Bitcoin on Edge: Whale Moves and Short-Term Losses Signal Potential Shake-Up

Bitcoin continues to face challenges sustaining its momentum after retreating from its recent all-time high above $124,000. At the time of writing, the asset trades around $111,090, reflecting a 10.5% decline from its peak and a 4.2% drop over the past ￰0￱ pullback highlights growing uncertainty among traders as buying pressure weakens, even while some on-chain indicators suggest potential ￰1￱ such signal comes from Binance, the world’s largest cryptocurrency exchange by trading ￰2￱ Crazzyblockk, a contributor to CryptoQuant’s QuickTake platform, examined a metric called the Binance Buying Power ￰3￱ to the analyst, this ratio, measuring the inflow of stablecoins relative to Bitcoin outflows from Binance, has recently climbed sharply, moving into positive ￰4￱ implication is that traders are sending stablecoins into the exchange (potential buying power) while withdrawing Bitcoin, likely for long-term ￰5￱ Reading: Bitcoin Keeps Slipping Down: Is $107,000 The Next Support?

Binance Buying Power Ratio Signals Accumulation Crazzyblockk explained that this pattern points to a buildup of liquidity while simultaneously reducing the Bitcoin supply available for sale on ￰6￱ his words: Stablecoins in, BTC ￰7￱ combination of accumulating ‘dry powder’ and securing assets off-exchange is a classic sign of a market preparing for a bullish ￰8￱ surge in buying power ratio coincides with Bitcoin’s current consolidation phase, suggesting that some traders may be preparing for a rebound. Historically, an increase in stablecoin inflows has often preceded heightened trading activity, with many market participants using these reserves to enter positions once favorable conditions ￰9￱ the same time, large Bitcoin outflows from exchanges can reflect a broader trend of long-term holding ￰10￱ who transfer coins to private or institutional-grade wallets often intend to store them securely, limiting immediate selling ￰11￱ sustained, this dual trend of stablecoin accumulation and Bitcoin withdrawals could support the market by reducing available supply and preparing liquidity for upward ￰12￱ Short-Term Holders Show Signs of Weakness While Binance metrics suggest optimism, another CryptoQuant analyst, Darkfost, highlighted a more cautious indicator: the Spent Output Profit Ratio (SOPR) for short-term holders (STHs).

This metric measures whether coins moved on-chain are being sold at a profit or ￰13￱ noted that the STH SOPR has now fallen below 1, with its monthly average sitting at the neutral ￰14￱ practical terms, this means that many recent buyers are no longer selling at a profit, and some are even taking ￰15￱ wrote: Historically, when STH SOPR reaches this level, two scenarios are ￰16￱ the market rebounds quickly, or short-term holders panic, leading to further ￰17￱ this cycle, the second scenario has often played out—though these periods have consistently created opportunities for medium- to long-term ￰18￱ comparison to late 2021, when Bitcoin last peaked at $69,000 before entering a prolonged correction, shows the weight of this signal.

A persistent decline in SOPR could indicate rising pressure from traders seeking to exit, even as long-term holders demonstrate greater ￰19￱ image created with DALL-E, Chart from TradingView