Bitcoin (BTC) whales trading on Binance seem to be easing their selling pressure, but the possibility of increased BTC sales from miners could introduce fresh downward pressure on the market.
As per CryptoQuant’s community analyst Darkfost, whale activity on Binance, a platform handling significant Bitcoin trading volumes, is displaying signs of decline.
The exchange whale ratio, a metric monitoring the proportion of the top 10 inflows to the total inflows on an exchange, is on the decline. Higher values of this ratio usually indicate heightened activity from large holders, often signaling increased selling pressure.
Conversely, a decreasing exchange whale ratio suggests that whales are not selling as much Bitcoin, a trend historically linked to market stabilization or the start of bullish trends.
If this trend persists, it could signify that the recent market correction is approaching its conclusion. This metric has previously served as a leading indicator of potential trend reversals, making it a critical aspect to monitor in the current market scenario.
Potential pressure from miners
While whale activity on Binance is slowing down, Bitcoin miners could emerge as a new source of selling pressure. Verified author Axel Adler Jr. from CryptoQuant highlighted that miners are facing conditions similar to those post the latest Bitcoin difficulty adjustment, often preceding miner capitulation.
Miner capitulation refers to instances when miners are compelled to sell Bitcoin to cover operational expenses. This usually occurs when mining profitability decreases due to rising costs or falling prices.
When miners sell off their holdings, additional supply can flood the market, potentially offsetting any decrease in selling pressure from whales.
Historically, miner capitulation has triggered significant market movements. The extent to which miners will sell in the current environment remains uncertain, but their actions will play a crucial role in determining Bitcoin’s short-term price direction.
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