Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. After failingto decisively break above the $120,000 level in mid-July, Bitcoin (BTC) could face further price corrections as whales continue to increase BTC inflows to the Binance crypto exchange. Is Bitcoin Losing Its Bullish Momentum?
According to a recent CryptoQuant Quicktake post by contributor Arab Chain, fresh data from the Binance Whale-to-Exchange Flow indicator suggests that BTC may soon experience additional downside pressure. Related Reading Bitcoin ETF Market Flashes Warning: IBIT Outflows Paired With Drop In Tron USDT Transfers 4 days ago
The analyst noted that despite growing retail participation in the BTC market, persistently high whale inflows into Binance – combined with a declining Bitcoin price – signal that the market could be entering a technical correction phase.
Arab Chain shared the following chart, where the purple zone shows that whale inflows to Binance remained consistently high throughout July and early August. At the same time, the drop in BTC price reflects a distribution pattern, where whales begin unloading BTC on exchanges following a sharp rally. Source: CryptoQuant
Although there were no extreme spikes, whale inflows into Binance stayed elevated in the $4 billion to $5 billion range, indicating that these large holders are actively moving BTC onto the exchange – often a precursor to major sell-offs.
The fact that these inflows remain high on Binance despite the drop in BTC price suggests that either whales are still selling their holdings on the exchange, or they are waiting for a price rebound to exit the market.
Similarly, the light blue area in the chart shows a notable increase in retail inflows to Binance during late July and early August. Historically, such late-stage retail participation often marks the final phase of a bullish cycle, providing exit liquidity for whales. The analyst concluded: Despite the rise in retail participation, the market shows signs of internal weakness, with sustained whale inflows to Binance and loss of upward momentum. If this behavior continues, the market may be entering a medium-term correction phase. Investors Still Optimistic About BTC
While signalssuggest the current BTC rally may be overextended, some investors remain confident, employingstrategies like Smart Dollar-Cost Averaging (DCA) to accumulate BTC in anticipation of further price gains. Related Reading Bitcoin Holds Steady At $115,000, But Realized Price Data Warns Of Fragility 2 days ago
Fellow CryptoQuant analyst Oinonen noted that while the recent pullback in BTC price may have raised concerns about further declines, the asset’s historical Q4 performance could propelit to a new all-time high of $200,000 by the end of 2025.
After hitting a recent low around $111,800, BTC has recovered part of its losses and is now trading near $116,500. Still, some analysts cautioninvestors against “excessive optimism.” At press time, BTC was trading at $116,501, up 0.2% over the past 24 hours. Bitcoin trades at $116,501 on the daily chart | Source: BTCUSDT on TradingView.com Featured image from Unsplash, charts from CryptoQuant and TradingView.com