Bitcoin is facing increasing selling pressure as key on-chain metrics point to increased activity on cryptocurrency exchange Binance, according to a recent analysis by CryptoQuant.
Data shows that investors are making more crypto deposits from cold wallets, leading to increased exchange inflows and potentially a decline in market sentiment.
One of the most notable trends is the increasing 7-day moving average of average coin inflows to Binance, a metric that suggests larger, one-time deposits are occurring more frequently, a pattern that typically precedes selling pressure.
Another critical indicator is the “Bitcoin: Exchange Inflows (Top10)” metric, which measures the total volume of coins generated by the top ten inflows. This figure has reached levels not seen in nearly a year, signaling significant Bitcoin movement onto Binance, a trend that is historically consistent with increased selling.
Binance’s Bitcoin reserves have climbed to levels last seen in November 2023. An increase in exchange reserves usually indicates that traders are preparing to sell. The Buyers’ Bid/Ask Ratio also confirms this view, suggesting that trading activity on the platform is currently bearish.
The market has been in a downtrend since Bitcoin reached its all-time high in December 2024. However, traders seem unaffected by this, increasing their leverage in an attempt to recoup their losses. The Estimated Leverage Ratio has been on an upward trend since December 2024, indicating that market participants are becoming more aggressive with their trading strategies.
The Net Realized Profit and Loss (NRPL) metric reveals that investors collectively lost over $550 million, which may be pushing them to take riskier positions.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/how-are-binance-whales-behaving-in-the-recent-downturn-custom-metric-reveals-onchain-binance-data/