#Bitcoin Price Faces #Correction Risks as Whale Inflows to Binance Remain Elevated

After failing to decisively break above the $120,000 resistance level in mid-July, Bitcoin ($BTC ) could be entering a correction phase, as on-chain data shows sustained whale inflows to Binance. Market analysts warn that despite growing retail participation, heavy selling pressure from large holders may cap further upside in the short term.

Whale Activity Signals Possible Downside Pressure

According to a CryptoQuant Quicktake post by market contributor Arab Chain, recent readings from the #Binance #Whale -to-Exchange Flow indicator suggest that Bitcoin may be on the verge of further price declines.

The data reveals that whales — defined as holders of large BTC quantities — have been consistently transferring coins to Binance throughout July and early August. These inflows have remained in the $4 billion to $5 billion range, a historically high level associated with potential distribution phases where large players unload holdings after a price rally.

“Despite growing retail participation in the BTC market, persistently high whale inflows into Binance — combined with a declining Bitcoin price — #signal that the market could be entering a technical correction phase,” — Arab Chain, CryptoQuant Analyst

Distribution Pattern Emerging After July Rally

The CryptoQuant chart shared by Arab Chain highlights two notable zones:

Purple Zone (Whale Inflows): Indicates elevated transfers from whale wallets to Binance since mid-July, suggesting profit-taking or preparation for large-scale selling.

Light Blue Zone (Retail Inflows): Shows rising participation from retail traders in late July and early August, often marking the final stage of a bullish cycle, when smaller investors provide liquidity for whale exits.

Historically, when whale inflows stay high during price weakness, it has preceded medium-term corrections. While there have been no extreme transfer spikes, the persistence of these elevated levels indicates continued caution.

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