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Despite Bitcoin maintaining investor confidence by holding above critical psychological levels like $90,000, the asset faces notable shift in market sentiment . A CryptoQuant analyst, G a a h, recently shared insights indicating heightened selling pressure within the market, which could signal caution for traders. At the core of this analysis is the delta between buy and sell taker volumes—a key metric used to gauge the market’s behaviour . Bitcoin Faces Increased Selling Pressure According to the analyst, the buy and sell taker ratio metric has reached levels comparable to those recorded in July 2024. This marks a period of heightened selling activity, attributed to profit-taking by investors, market uncertainty, or mass liquidations. The analyst noted that these developments coincide with an uptick in volatility and aggressive actions in the futures market. Notably, $430 million in long positions were liquidated within a week, highlighting the significant reaction from sellers. G a a h also revealed that the liquidation of long positions, which reached its fourth-highest peak in 2024, has had a notable effect on Bitcoin’s price behaviour. This volume of liquidation often result in a “redistribution of capital,” leading to temporary reversals or consolidation phases, the CryptoQuant analyst noted. Historically, these liquidation-driven price movements have also acted as pivotal moments, either reinforcing support levels or triggering further sell-offs. Outlook and Precautions For BTC Traders The analyst pointed out that sustained selling pressure could negatively influence Bitcoin’s price trajectory in the short term. As such, continuous monitoring of market indicators and risk management is important for investors aiming to navigate these conditions. G a a h added: Defensive strategies [such as reducing leverage and setting stop-losses] and continuous monitoring of the market are recommended to avoid excessive exposure at this time of dominant selling pressure. Meanwhile, Bitcoin has continued with its positive performance. Over the past day, the asset has increased by 1.6% bringing its price above $97,000 . Although Bitcoin is still 2.7% decrease away from its all-time high (ATH) of $99,645, there appears to still be a form of bullish sentiment in its market. According to recent analysis from renowned crypto analyst known as Javon Marks on X, Bitcoin’s 2-hour time frame on the chart has “confirmed” a notable bullish signal. This confirmation makes the rally to $100,000 price mark imminent and the current target at $116,652. #Bitcoin (BTC)’s 2h chart has confirmed a high conviction signal for a full recovery and continuation! Movement above $100,000 can be coming, IMMINENTLY Current Target Remains @ $116,652 pic.twitter.com/7ifdmnuR8d — JAVON MARKS (@JavonTM1) November 28, 2024 Featured image created with DALL-E, Chart from TradingView
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Bitcoin Flows To Binance Hit Historic Lows—Is Market Confidence Soaring?
The Bitcoin market continues to sees major shift, with recent data showing significant changes in trader behaviour. A CryptoQuant analyst, Joao Wedson, has recently highlighted an important trend concerning Bitcoin (BTC) flows between exchanges. Specifically, Bitcoin transfers from other exchanges to Binance have reached historic lows. This shift, as seen in the Exchange to Exchange Flow metric, marks a potentially positive transformation in the market , reflecting “increased stability and confidence.” Bitcoin Exchange Flows Hit Historic Lows: What This Means for the Market It is worth noting that this trend of reduced flow of Bitcoin into an exchange like Binance is quite notable given Binance’s position as the largest cryptocurrency exchange by global trading volume. Wedson attributed this trend to several key factors. Firstly, the analyst mentioned that “liquidity consolidation” on Binance is a major driver. As the dominant exchange in terms of trading volume, Binance eliminates the need for traders to transfer assets from other platforms to access liquidity. Wedson noted that this simplification appeals to many market participants who now prefer to operate directly on Binance without inter-exchange movements . Secondly, the rise of stablecoins like Tether (USDT) and USD Coin (USDC) has reduced Bitcoin’s role as an intermediary asset for exchange transfers. In the past, BTC was commonly used as a bridge currency. However, stablecoins, offering lower volatility and transaction costs, are now the preferred choice for such transactions, further decreasing the reliance on Bitcoin. Lastly, the analyst attributed the reduced flow of Bitcoin to Binance to “growing confidence in both Binance and the broader cryptocurrency market. ” Wedson wrote: Historically, during dump scenarios, large amounts of BTC were sent to Binance, signaling panic and mass selling. Today, this reduced flow likely reflects greater investor confidence in Binance and the market overall. Why Is This Positive? The historic low in Bitcoin exchange flows to Binance has broader implications for the crypto ecosystem. As the crypto analyst highlighted, the reduced movement of BTC during price drops suggests less panic-driven activity among investors. $BTC Flow from All Exchanges to Binance Hits Historic Lows “This drop in the indicator is not a sign of weakness but rather a reflection of market stability and confidence in Binance as the leading global exchange.” – By @joao_wedson Read more https://t.co/3mHT5OhsvH pic.twitter.com/EH3jAXZpM1 — CryptoQuant.com (@cryptoquant_com) November 29, 2024 This behavior may indicate a more informed and experienced investor base, which bodes well for the long-term stability of the cryptocurrency market. Wedson added another point, noting: Strengthening the Ecosystem: Binance is solidifying its position as a hub for traders, reducing the need for inter-exchange transfers. Featured image created With DALL-E, Chart from TradingView NewsBTC
David Marcus Suggests Political Interference Behind Diem’s Collapse Amidst Rising Claims of Targeted Banking Exclusions
David Marcus alleges political interference killed Facebook’s Diem stablecoin project, underscoring the complexities in crypto regulation. Marcus’s claims are part of a broader narrative where crypto founders report targeted banking NewsBTC
