Bitcoin has continued its downward trajectory when observed over weekly and monthly timeframes, recording an 8.4% decline in the past week and a 16.2% drop over the past month. However, in the shorter time frame, signs of potential reversal are emerging.
Over the past 24 hours, Bitcoin has seen a slight recovery, with its price rising to $81,647. This shift has led analysts to closely examine whale activity and exchange trends to determine whether the correction phase may be nearing an end.
Binance’s Whale Activity and Its Impact on Bitcoin’s Trend
One of CryptoQuant’s analysts, Darkfost, has identified a key trend in Binance’s whale activity that could impact Bitcoin’s price movements. Binance, as the largest cryptocurrency exchange by volume, plays a significant role in market liquidity, making its whale activity an important metric to monitor.
Darkfost’s analysis of the Bitcoin Exchange Whale Ratio on Binance suggests that whales are reducing their selling pressure, which could signal a shift in market sentiment.
The exchange whale ratio measures the proportion of the top 10 inflows to total inflows on an exchange. When this ratio is elevated, it indicates increased whale selling activity, often contributing to short-term price corrections or market consolidation phases.
Conversely, a declining whale ratio suggests less selling pressure, which could help stabilize Bitcoin’s price or even contribute to a rebound. According to Darkfost, the declining whale ratio on Binance may indicate that the selling pressure from large Bitcoin holders is easing.
Historically, a decrease in whale selling activity has preceded bullish market movements, making this metric a key indicator for traders. If this trend persists, Bitcoin could see reduced downward momentum, potentially setting the stage for price stabilization or recovery.
Binance’s Dominance in Spot and Futures Trading
In a separate analysis, CryptoQuant analyst Crazzyblockk has highlighted Binance’s continued dominance in both spot and futures markets. Binance holds the largest market share in crypto trading, reinforcing its position as a key player in price discovery and liquidity.
Currently, Binance accounts for a 45.5% share of the USDT futures market, significantly ahead of other trading platforms. Crazzyblockk wrote:
This highlights Binance as the preferred choice for derivatives trading, offering the best liquidity and execution.
In the spot market, Binance maintains a 35% share of the total trading volume, further solidifying its role as the leading exchange in the industry.
Featured image created with DALL-E, Chart from TradingView