The inflow from whales and retail investors on Binance has hit historic lows on the chart.
Strong buying demand pushes the price of Bitcoin back above the resistance level of 107K USD.
After three days of sideways movement since dropping to 102K USD, Bitcoin (BTC) has broken out of the accumulation zone on the price chart. Despite geopolitical tensions in the Middle East, cryptocurrency investors remain steadfast, continuing a vigorous HODL strategy.
What does the new bottom threshold signal?
In the context of escalating tensions, both whales and retail investors view BTC as a safe haven. Data shows that both groups are holding their Tokens tightly, avoiding selling despite the turmoil.
HODL behavior is strongly developing, especially on Binance. According to analysis from CryptoQuant by Darkfrost, the amount of BTC deposited into Binance from both whales and retail has dropped to historic lows.
Source: Cryptoquant
Typically, when exchange inflows weaken, investors expect large profits so they limit selling. Currently, BTC inflow on Binance from both of these groups has dropped to the lowest level since the beginning of the bullish cycle.
This reflects a preference for accumulation rather than 'dumping'. Notably, both whales and retail are in agreement – a key signal for the market at this time.
Source: IntoTheBlock
Overall across exchanges, this trend is not limited to Binance. The net inflow rate from whales to exchanges has reached zero, indicating strong accumulation activity on a broad scale.
Whales are not depositing coins onto the exchange at all; on the contrary, they are continuously withdrawing. When the sentiment of whales aligns with retail investors as it is now, it is a sign of immense confidence in the market. The HODL trend reflects expectations of a new breakout with Bitcoin.
In previous cycles, similar patterns often appeared when inflows were in sync among groups – signaling a market peak when Binance was 'flooded' with BTC from both whales and retail at the same time.
What is the impact on BTC?
Undoubtedly, the sharp decline in inflows to the exchange has supported Bitcoin's price recovery positively. On the daily chart, BTC surged, reaching 107,251 USD, well above the previous accumulation zone.
The breakout momentum after three days of sideways movement shows a surge in demand in the market. This is reflected not only in the low inflow on Binance but also in extremely strong buying pressure, pushing the price back to the old peak.
Source: Cryptoquant
The Taker Buy-Sell Ratio for Bitcoin continues to soar to a monthly peak, confirming that the buying side is 'covering the ground', completely overshadowing the market. This is a signal reinforcing long-term accumulation.
The sharp decline in inflow to the exchange alongside overwhelming buying power helps BTC easily reclaim the 107K USD mark. If this momentum continues, BTC could very well challenge the 109K USD area soon.
However, if the bulls do not hold the rising area, a wave of profit-taking at 107K USD could force the price back to the old accumulation zone. In this scenario, Bitcoin will still oscillate within the range of 103K – 105K USD, continuing the sideways trend.
Source: https://tintucbitcoin.com/btc-cham-day-sau-khuay-dong-thi-truong/
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