Key Points
- Bitcoin’s recent downward trend may be coming to an end as selling pressure from large holders on Binance decreases.
- Large holders have purchased around 65,000 BTC in the past month, suggesting that current prices are seen as a good entry point by institutional investors.
CryptoQuant analyst Darkfost has suggested that the recent downtrend of Bitcoin might be nearing a conclusion.
This is due to an observed decrease in selling pressure from large Bitcoin holders on Binance.
Decline in Binance’s BTC Whale Ratio
In a post made on March 12, Darkfost pointed out a reduction in Binance’s BTC whale ratio.
This ratio measures the proportion of the top 10 inflows compared to total inflows, with a high ratio indicating strong whale selling activity that often leads to short-term corrections.
However, the recent downward trend of this metric suggests that large holders are lessening their sell orders, a sign that often precedes a market recovery.
Bitcoin has experienced a significant drop, falling nearly 30% from its peak in January and reaching a four-month low of around $77,000 on March 11.
Contrary to this, on-chain data shows that whale holdings have been on the rise.
Increased Purchases by Large Holders
According to a post by CryptoQuant, large holders have bought nearly 65,000 BTC in the past 30 days.
This suggests that the current prices are seen as an attractive entry point by institutional investors.
Other factors have also affected the market.
The U.S. government’s recent announcement of a strategic Bitcoin reserve was initially viewed positively.
However, it later became clear that these holdings would primarily come from confiscated assets rather than aggressive buying.
This revelation, along with record outflows from Bitcoin ETFs and concerns over potential tariffs, has increased investor uncertainty.
Traditional markets, particularly the NASDAQ, continue to significantly influence Bitcoin’s price.
BitMEX co-founder Arthur Hayes shared his views on the market in a post on March 11.
He predicted that Bitcoin could hit a low of around $70,000, a 36% drop from its peak, before starting its next rally.
However, he believes that a true recovery will need more than just changes in the crypto market.
According to Hayes, a downturn in the stock market is part of a larger financial shift that is necessary.
At the moment, the ongoing accumulation by large investors and the decreasing whale ratio suggest that selling pressure is declining.
Bitcoin, currently trading at $83,234, could be on the path to recovery if this trend continues.
