Analyst Suggests Market Rebound as Whale Selling Pressure Eases
Declining Whale Ratio on Binance Indicates Potential Recovery
CryptoQuant analyst Darkfost believes Bitcoin’s recent decline may be nearing its end as the selling pressure from large holders on Binance appears to be diminishing.
- On March 12, Darkfost highlighted a decline in Binance’s BTC whale ratio, which tracks the share of the top 10 inflows relative to total inflows.
- A high whale ratio typically signals strong selling activity by large holders, often resulting in brief market corrections.
- The current downward trend in this ratio suggests that big holders are cutting back on their sell orders, which often signals an upcoming market rebound.
Bitcoin’s Price Decline and Growing Whale Holdings
Bitcoin has faced significant declines, dropping almost 30% from its January all-time high, hitting a four-month low of $77,000 on March 11.
- However, on-chain data reveals that whale holdings have actually increased.
- Over the past 30 days, large holders have bought nearly 65,000 BTC, indicating that institutional investors may see current prices as an attractive entry point.
External Market Influences and Uncertainty
Despite the positive signs in whale activity, other factors have contributed to market uncertainty.
- The U.S. government’s announcement of a strategic Bitcoin reserve initially appeared promising, but it was later revealed that these holdings would primarily consist of seized assets rather than fresh acquisitions.
- Investor uncertainty has also been fueled by record outflows from Bitcoin ETFs and broader macroeconomic concerns, including potential tariffs.
- Traditional financial markets, especially the NASDAQ, continue to impact Bitcoin’s price movements.
Market Predictions and the Path to Recovery
Arthur Hayes, co-founder of BitMEX, shared his outlook on the market in a March 11 post, suggesting that Bitcoin could bottom out at $70,000—a 36% drop from its all-time high—before starting its next rally.
- However, Hayes believes that a true recovery will need more than just crypto market dynamics.
- According to Hayes, a downturn in the stock market is essential for triggering the broader financial shift needed for a sustainable rebound.
Market Outlook: Gradual Selling Pressure Easing
Currently, large investors continue to accumulate Bitcoin, while the declining whale ratio suggests that selling pressure is easing.
- At the time of writing, Bitcoin is trading at $83,234, and if this trend continues, a market recovery could be on the horizon.
