Bitcoin's weekly performance is rock solid. Given that all supplies are in profit, one might think a wave of selling should have emerged by now. However, so far, holders are still holding and waiting. There has been no significant pullback, nor panic selling.
However, as AMBCrypto points out, this patience may be wearing thin. The longer BTC stays below its key resistance level without breaking through, the more attractive risk avoidance becomes. The reasoning is simple - why let profit margins slip away?
In such a sustained market, a single breach of key support levels can trigger wider liquidation. Therefore, when CryptoQuant signals a surge in Binance whale activity, it is a signal that cannot be ignored.
FOMO - the adhesive of Bitcoin's upward momentum.
The fear and greed index has not yet fully reached the euphoric point. This is quite telling. Historically, when Bitcoin enters the 'extreme greed' zone, it often marks the last sprint before a peak.
For example - the local peak of $44,000 at the end of 2023, $73,000 in March 2024, and the peak of $109,000 last December all coincided with the index reaching its upper limit.
But what about now? Even after breaking through $111,000, we have not reached the same peak of green band sentiment. This divergence is key. It tells us that market participants are not yet fully excited. And in a bull market cycle, this is rocket fuel.
No wonder Bitcoin's structure has remained solid. What is the adhesive? The 'fear of missing out' (FOMO) on unrealized upside potential. However, if BTC stagnates here for too long, profit-holding investors may rush to exit and lock in gains before momentum fades.
For this reason, everyone is closely watching the behavior of Binance whales. In fact, tracking the inflow and outflow of funds from Binance's top ten whale wallets has significantly increased the 'whale activity score'.
AMBCrypto believes this is a signal that large funds are flowing. When large funds flow, the market usually fluctuates accordingly.
Binance has become the starting point for whale positioning.
CryptoQuant data marks a significant change - the proportion of Bitcoin whales on exchanges (24-day SMA) has returned to levels before the historical peak.
Background information: The increase in the proportion of exchange whales indicates that deposits from whales to Binance are increasing, which often heralds potential selling pressure.
Although it is still too early to announce a full transition into the distribution phase, this indicator is crucial for grasping the situation and deserves close attention.
If whales do not quickly shift to meaningful off-exchange accumulation, Bitcoin's upward momentum may stagnate in a long-term consolidation.
Time is of the essence. Without sustained buying pressure, the current momentum driven by 'fear of missing out' (FOMO) may collapse, increasing the likelihood of a corrective pullback.
