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Bitcoin ($BTC) has fallen below $73,000 in recent days following a series of sharp declines.
While these declines were occurring, Binance, the world’s largest cryptocurrency exchange, also saw large-scale Bitcoin transfers.
According to data from the on-chain analytics platform CryptoQuant, between 56,000 and 59,000 $BTC were deposited into Binance on February 2-3.
Analyzing this situation, the analyst known as CryptoQunat, Darkfost, noted that between February 2nd and 3rd, Binance received its largest $BTC inflow of the year, reaching approximately 56,000 to 59,000 $BTC.
The analyst stated that $BTC falling below the $74,000 level, a significant long-term trend line, created panic among short-term investors, and this panic was reflected in the transfers made through Binance.
This is because short-term investors are more sensitive to Bitcoin price fluctuations than other investors.
“…Short-term investors, who are particularly sensitive and reactive to price movements, also contributed to this movement, with a loss of 54,000 $BTC on February 2nd alone.”
The analyst stated that large-scale Bitcoin transfers created significant selling pressure but also indicated a bottoming out of the market.
“…The record Bitcoin inflows to Binance are creating real selling pressure in the spot market, paradoxically indicating that $BTC has entered an oversold region.”
At this point, the analyst noted that the largest $BTC inflow of the year on Binance could signal a market bottom, stating that market bottoms historically occur during such periods when investors surrender and panic.
*This is not investment advice.
bitcoinworld.co.in