Key Points:
Short-term Bitcoin holders have shown classic profit-making behavior and send BTC to exchange.
Their presence between exchange influx reached levels related to “local bottoms” in BTC/USD.
The popular bid level for Binance is currently at $117,500.
Bitcoin (BTC) could be at the next local bottom as retail investors are owing to profits, a new study says.
In a Quicktake blog post released Wednesday, Onchain Analytics Platform Cryptoquant saw a key event in BTC price action.
Bitcoin exchange influx causes new price signals
Bitcoin retail investors are reducing their BTC exposure as prices go to around $120,000, Cryptoquant confirmed.
However, the exchange flow is sloppy. Inbound transactions are increasingly coming from new investors, commonly known as short term holders (STHs).
“Increasing Binance’s Short-Term Holder (STH) activity signals potential profit acquisition,” contributor AMR Taha summed.
Taha highlighted the rate of vinance exchange inflow in STHS. This shows the percentage of inbound transactions to Binance from entities that have hadling within six months.
The ratio has recently exceeded 0.4, indicating that Taha “often coincides with the local bottom.”
“The latest spikes above 0.4 suggest that retail participants may have started stacking and depositing Bitcoin Holdings.
“STH cohorts – which normally hold BTC below 155 days – tend to sell during the upward trend, and the current ratio enhances this behavior.”
Last week’s all-time high prompted a massive awakening of trading activity across crypto exchanges.
“Among all venues, Binance recorded the largest daily increase in spot trading volumes, both the previous day and the next day, with the new highs, thus gaining additional market share on the day after the peak of July 18th.”
“Crypto.com, Coinbase, Bybit and OKX also showed relatively high spot trading volumes.”
Interest on BTC price bids focuses on $117,500
As Cointelegraph pointed out, the analysis has already been called the onset of “seller fatigue” as BTC/USD was whipped between $116,000 and $120,000.
Related: Bitcoin Bull Run “probably nearby” as XRP flips McDonald’s
Traders expect another upward foot of Bitcoin, despite attention and capital being spinning into altcoin.
Exchange-Order-Book bid liquidity supports $117,500 as the price “magnet” to monitor surveillance resource coin lath highlighted on Wednesday in X.
Large-scale liquidity clusters continue to shape low-frame movements with BTC/USD.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
