Bitcoin (BTC) has fallen below $73,000 in recent days following a series of sharp declines.
While these declines were occurring, Binance, the world’s largest cryptocurrency exchange, also saw large-scale Bitcoin transfers.
According to data from the on-chain analytics platform CryptoQuant, between 56,000 and 59,000 BTC were deposited into Binance on February 2-3.
Analyzing this situation, the analyst known as CryptoQunat, Darkfost, noted that between February 2nd and 3rd, Binance received its largest BTC inflow of the year, reaching approximately 56,000 to 59,000 BTC.
The analyst stated that BTC falling below the $74,000 level, a significant long-term trend line, created panic among short-term investors, and this panic was reflected in the transfers made through Binance.
This is because short-term investors are more sensitive to Bitcoin price fluctuations than other investors.
“…Short-term investors, who are particularly sensitive and reactive to price movements, also contributed to this movement, with a loss of 54,000 BTC on February 2nd alone.”
The analyst stated that large-scale Bitcoin transfers created significant selling pressure but also indicated a bottoming out of the market.
“…The record Bitcoin inflows to Binance are creating real selling pressure in the spot market, paradoxically indicating that BTC has entered an oversold region.”
At this point, the analyst noted that the largest BTC inflow of the year on Binance could signal a market bottom, stating that market bottoms historically occur during such periods when investors surrender and panic.
*This is not investment advice.
