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Bitcoin’s [BTC] short-term traders appear to be adjusting their market stance, with a significant decrease in BTC inflows to Binance signaling a shift in sentiment. Previously, short-term traders contributed to selling pressure, but the latest data suggests they are now holding onto their coins rather than offloading them.
Declining BTC Inflows to Binance
A drop in BTC inflows to Binance often reflects changes in investor sentiment and trading strategies. According to recent data, Bitcoin transfers from short-term holders (STHs) to Binance have fallen sharply to just 6,300 BTC. In contrast, an average of 24,700 BTC has been sent to other exchanges.
This decline suggests a reduction in selling pressure on Binance, with traders adopting a more cautious approach. If this trend continues, it could affect Binance’s liquidity and trading volume, potentially influencing Bitcoin’s price stability. Meanwhile, the rise in BTC inflows to other exchanges highlights a shift in trading preferences within the crypto community.
Short-Term Holders Adopt a Cautious Stance
Short-term Bitcoin holders are critical in determining market sentiment, as their actions often indicate short-term profit-taking or panic selling.
Recent data from CryptoQuant reveals a notable decline in BTC activity from these holders. The Short-Term Spent Output Profit Ratio (SOPR) and UTXO Age Band metrics show reduced movement, pointing to increased hesitation to sell. This suggests that after previous profit-taking, STHs are now adopting a more hold-focused approach.
This shift could ease selling pressure and lead to a more balanced market outlook in the short term.
Bitcoin’s Price Outlook
Bitcoin’s latest attempt to break above the 50-day Simple Moving Average (SMA) at $86,268 met resistance, pushing the price back toward $84,211. At the time of writing, the Relative Strength Index (RSI) stands at 46.82, placing BTC in a neutral to slightly bearish zone with weak buying momentum.
Additionally, the On-Balance Volume (OBV) is at -92.95K, indicating low trading volume and reduced buying pressure. If BTC fails to reclaim the 50-day SMA, a retest of support near the 200-day SMA at $88,049 is possible. However, a successful breakout could signal a recovery phase for the leading cryptocurrency.
With short-term traders stepping back from aggressive selling, Bitcoin’s price action remains at a critical juncture, awaiting the next major move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Bitcoin Downtrend Nears End? Key On-Chain Metrics Signal a Potential Reversal
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
