Why Binance Traders Are Extremely Bearish On Bitcoin? Details

Bitcoin traders on Binance showed strong signs of bearishness as July ended, with net taker volume dropping sharply.

This shift came just before the U.S. Federal Reserve’s July 30th meeting as new labor data bumped market uncertainty.

Meanwhile, Bitcoin’s outlook for August remains mixed, signaling broader trader caution.

Traders on Binance are Turning Bearish Fast

Bitcoin saw a major shift in trader behavior on Binance as net taker volume fell deep into negative territory.

According to analyst Amr Taha from CryptoQuant, this change showed that many traders were either selling Bitcoin or opening short positions.

It happened in the last week of July and pointed to growing fears about where Bitcoin might go next.

It is important to add that the data showed net taker volume hitting a negative value of $80 million. That means more traders were selling than buying, and most were doing so with urgency.

Taha explained that this pattern is often driven by small traders reacting to short-term price changes.

Per the chart shared, Red clusters appeared during the selloffs on July 25 and July 29, marking clear pressure.

Taha added that the drop likely came from rising concerns about broader economic issues.

This is especially crucial as key U.S. data is being released and the Federal Reserve’s interest rate meeting minutes are coming up.

Meanwhile, while smaller traders were selling, some large wallets acted differently. Whale Screener data from July 30 showed big deposits of USDT stablecoins and Bitcoin withdrawals.

This often means large holders are preparing to buy or are already buying, possibly expecting a bounce in price.

These opposite moves between whales and retail traders have created mixed signals for the Bitcoin price projections.

Bitcoin Gets a Nod from Pompliano

In a separate report, Bitcoin got public support from Anthony Pompliano, the CEO of Professional Capital Management.

In a CNBC interview, he said Bitcoin had become what he called the king of Wall Street.

He explained that the asset was no longer just a risky bet, but something many in finance were now taking seriously.

Pompliano noted that the USD’s purchasing power fell about 30% over the past five years. He added that the S&P 500 was down over 85% since 2020 — bleak when compared to BTC.

Essentially, these points were used to show how Bitcoin had held value better than some traditional investment options.

Anthony Pompliano’s comments came at a time when Bitcoin was facing short-term pressure. This adds a different view from the bearish trading seen on Binance.

Bitcoin’s Outlook for August Unclear

Bitcoin’s performance in August has been mixed in the past. Data from previous years showed a wide range of results.

In August 2023, Bitcoin lost over 11%, a buildup from 2022 when BTC price dropped nearly 14%.

However, in August 2021, it gained 14.8%. On average, August has seen a slight decline of about 2.58%, while the median return at a loss of 4.43%.

As of the end of July, Bitcoin’s 30-day return was up 11.2%, trading between $116,037 and $118,839.

Over the past six months, it was up 12.9%, and it had gained 26.8% since the start of the year.

Still, the recent drop in net taker volume showed that many traders were preparing for more downside ahead.

At the same time, whale activities suggested that some large players might be expecting a bounce.

With the Federal Reserve likely to keep interest rates steady and economic data still strong, August could go either way.

More importantly, market watchers will be paying close attention to which direction the Bitcoin price moves.