Bitcoin’s Downtrend May Be Ending, Suggests CryptoQuant Analyst
Bitcoin’s recent price drop might be coming to an end. Darkfost, a CryptoQuant analyst, believes that the selling pressure from big holders on Binance is easing. In a recent post on X, darkfost pointed out a drop in Binance’s BTC whale ratio. This ratio measures the share of the top 10 inflows compared to total inflows.
A high ratio usually means strong selling by whales, leading to short-term price corrections. However, the recent decline in this ratio suggests that large holders are cutting back on their sell orders. This could be a sign of an upcoming market recovery.
Bitcoin has seen a significant drop, falling nearly 30% from its all-time high in January. It reached a four-month low of about $77,000 on March 11. Yet, on-chain data shows that whale holdings have been increasing. In the last 30 days, large holders have bought almost 65,000 BTC.
This indicates that current prices might be seen as a good entry point by institutional investors. Other factors, like the U.S. goverment’s strategic Bitcoin reserve announcement, have also influenced the market. However, these holdings will mainly come from seized assets, not aggressive purchases.
Arthur Hayes, co-founder of BitMEX, predicts Bitcoin could bottom around $70,000 before rallying.He believes a true recovery needs more than just crypto market dynamics. A downturn in the stock market is part of a larger financial shift required.
Currently, Bitcoin is trading at $83,234. If the pattern of declining whale ratio and continuous accumulation by large investors continues, Bitcoin might be headed for a recovery.
