Bitcoin whales hint that the "market rebound" will be at the $80,000 level as inflows to Binance cool down
Do Bitcoin whales signal the beginning of a return to glory for the cryptocurrency market?
They are buying BTC again as the "panic" keeps small investors away, according to a new study.
Data from the on-chain analysis platform CryptoQuant shows a cooling of selling pressure from Binance whales.
Bitcoin whales readjust the market focus
A price of $80,000 for Bitcoin is attractive to large-volume investors, or at least a low-value sell proposition for those looking to exit the market.
In one of his March 12 blog entries, "Quicktake," Darkfost, a contributor to CryptoQuant, revealed that the proportion of the top ten inflows to Binance attributed to whales has fallen.
"Monitoring whale behavior has consistently provided valuable insights into potential market movements," he summarized.
"Since Binance handles the highest volumes, analyzing the whale ratio of Bitcoin exchanges on Binance provides a good view of the broader whale activity."
Whale ratio of Bitcoin exchanges (Binance). Source: CryptoQuant
The whale ratio of exchanges has exhibited a broad downward trend since mid-January, when the BTC/USD pair reached its latest all-time highs.
"Currently, this ratio is decreasing, implying that Binance whales are reducing their selling pressure," the post continues.
"Historically, an increasing ratio has been associated with short-term price corrections or consolidation phases, while a decreasing ratio has often preceded bullish trends. If this trend of decreasing selling pressure continues, it could help bring an end to the current correction and potentially signal a market rebound."
