Key Points
- Bitcoin’s rally remains strong with holders showing resilience despite the potential for profit-taking.
- Increased activity among Binance whales could signal potential selling pressure for Bitcoin.
Bitcoin’s weekly performance continues to impress, with the entire supply currently in profits. Despite this, there has not been a significant wave of selling, indicating that holders are maintaining their positions.
However, patience may be wearing thin. As Bitcoin continues to hover below its key resistance without breaking out, it becomes increasingly tempting for investors to de-risk. In such an extended market, a single crack in a key support level could trigger a broader sell-off.
Role of FOMO in Bitcoin’s Rally
The Fear & Greed Index, a measure of market sentiment, has not yet reached extreme levels of euphoria. This is significant, as historically, Bitcoin often reaches a peak when the index enters the “extreme greed” zone. Despite Bitcoin recently hitting $111k, the index has not reached its upper threshold, indicating that market participants are not fully euphoric yet. This lack of extreme sentiment is a key factor in the resilience of Bitcoin’s rally.
However, if Bitcoin continues to stall, holders sitting on profits may rush to exit and lock in gains before momentum fades. This is why there is a keen focus on whale behavior on Binance. The Whale Activity Score, which tracks inflows and outflows from Binance’s top 10 whale wallets, has seen a sharp increase.
Binance: The Epicenter of Whale Activity
Data from CryptoQuant has flagged a significant shift – Bitcoin’s Exchange Whale Ratio (24-day SMA) has returned to levels last seen before its all-time high. An increase in this ratio indicates a greater number of whale deposits to Binance, often signaling potential selling pressure.
While it’s too early to declare a full-blown distribution phase, this metric is a crucial market pulse check. If whales do not pivot quickly towards meaningful off-exchange accumulation, Bitcoin’s rally could risk stalling in extended consolidation.
Without sustained buying pressure, the current momentum driven by fear of missing out (FOMO) could unravel, increasing the odds of a corrective pullback.
