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Bitcoin Price Tests Key Support
In the last 24 hours, Binance whales’ inflow spiked to weekly highs of up to $1.2 billion in one day. This surge in asset movement to centralized exchanges increased sell pressure across the market, crypto analyst BoriVest wrote. This whale sentiment dip comes after a previous price run due to surging institutional demand taking the asset to new highs.
According to several opinion leaders, the rise in whale inflows is hinged on profit taking as fear gradually affects traders. This is also backed historically as BTC price trajectory declines after tapping all-time highs before a larger rebound. Although short-term profit-taking is mostly seen among retail traders, bulls jumped on the wave last week.
As expected, retail volumes also soared to Binance as BTC price dropped from the $120k to the 116k support zone. This resistance level is key for the crypto leader to maintain its momentum in the current bull phase. A drop could see further downward movement to the $110k mark. Inflows to centralized exchanges also led to outright sales as traders struggled for stability.
“Following this spike, Bitcoin was rejected from the $120K level and pulled back to the $115K–116K range. This area is now acting as a short-term support zone. If it fails to hold, a move toward the $110K level becomes increasingly likely. On the other hand, if Bitcoin can bounce strongly from this region, there is still potential to retest $121K and even attempt a new all-time high.”
 
Binance is key to determining market confidence due to its trading volume. Traditionally, the exchange’s data gives trading insight like whale volumes, inflows, and outflows help gauge retail projections. Bearish whale activities also crept into weekly institutional flow data for Bitcoin.
After weeks of consecutive inflows, BTC products saw a correction. Investors withdrew $175 million, citing sideways movements and macroeconomic factors. Meanwhile, monthly volumes and year-to-date figures are still bullish with traditional firms expecting more inflows.
Source: https://zycrypto.com/binance-whale-activity-spells-doom-for-bitcoin-traders-heres-more/