Short-Term Bitcoin Holders Move Millions To Binance—Is A Market Correction Imminent?
13 Novembre 2024 - 9:00AM
NEWSBTC
Bitcoin has been on a major upward trajectory, recently hitting an
all-time high (ATH) of above $89,000. As this milestone was
crossed, a notable trend emerged with short-term holders
transferring their holdings to major exchanges, particularly
Binance. According to CryptoQuant analyst Joao Wedson, this
behavior suggests that investors with shorter time horizons may be
positioning themselves to take profits, leading to potential
selling pressure in the market. What To Watch Out For Wedson
highlighted that the concentration of Bitcoin deposits to a single
exchange like Binance is worth close monitoring, as it could impact
liquidity and price stability on the platform, potentially
reverberating through the broader market. Related Reading: Is
Bitcoin Now Overheating? Key Metrics Reveal Crucial Insights For
Investors The CryptoQuant analyst emphasized three areas for market
participants to watch closely. First, tracking the flow of BTC to
exchanges, especially Binance, can provide insights into the
potential scale of selling intent among short-term holders. As more
coins flow to a major exchange, the potential for market impact
rises, making it crucial to gauge the extent of any impending
sell-off. Second, the impact on price volatility is expected to be
significant as concentrated selling or profit-taking on Binance
could create sharp movements, providing both challenges and
opportunities for traders. The final area of focus, according to
Wedson, is anticipating potential price movements based on these
inflows and understanding how they may influence the broader
market’s behavior. Bitcoin Market Correction Imminent? Meanwhile,
further insights were provided by another CryptoQuant analyst known
as “caueconomy.” This analyst pointed out that Bitcoin’s breakout
of its previous all-time high has initiated a price discovery
process. With this milestone, the market has seen heightened open
interest levels, with more than $16 billion added to futures
positions over the past week. This surge indicates a rise in
leveraged positions, which can lead to heightened risk of
corrections in the short term. Related Reading: Bitcoin Buying
Pressure Rises, But Here’s Why A Pullback Could Be Coming However,
the analyst emphasized that the market’s underlying fundamentals
appear much more strong this time around, suggesting that any
potential short-term corrections could be viewed as natural
adjustments. Rather than signalling a broader downturn, these
corrections may offer buying opportunities for investors looking to
enter or accumulate during periods of market pullback. Bitcoin
trades for $86,441, which has increased by 2.3% in the past day.
Notably, this current trading price marks a 3.6% decline from BTC’s
latest achieved all-time high of $89,864 earlier today. According
to renowned crypto analyst known as Ali on X, key support levels
for Bitcoin to watch are between $83,250 – $85,800 and $72,880 –
$75,520. Featured image created with DALL-E, Chart from TradingView
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