Key Takeaways
Bitcoin dropped to $111k amid rising Binance inflows and a Whale Ratio spike to 0.73. But a drop in Fund Flow Ratio and a rising Stock-to-Flow signal supply tightening. Price may now consolidate above $113k.
Bitcoin [BTC] has dropped nearly 5% from its late July high of $119.8k, falling to a 3-week low of $112k on the 2nd of August.
At press time, it hovered around $113.6k, with 24-hour trading volume down over 23%, per CoinMarketCap.
This latest drop comes amid growing sell pressure, led by whales and rising exchange inflows — especially on Binance.
Bitcoin Binance inflows surge
According to CryptoQuant analyst Darkfost, Binance BTC inflows have risen from 5,300 to 7,000 BTC in the past month.
Source: X/Darkfost
Although the uptick remains low, it signals a shift in investor behavior, ending a 4-month-long downtrend.
This trend reversal indicates an early shift in BTC investor sentiment as they anticipate increased market volatility or macroeconomic changes.
Source: Santiment
Significantly, a declining Weighted Sentiment further evidences the current shift in investor sentiment.
As of this writing, the metric sat around -0.78, implying that most investors have an unfavorable perception of the market.
Whales are leading the charge
Amid rising Binance inflows, whales led the pack.
According to CryptoQuant, the Exchange Whale Ratio surged significantly, reaching 0.7, implying whale dominance.
Source: CryptoQuant
Whales depositing BTC en masse suggests large holders are either taking profit, repositioning, or preparing for further volatility.
But wait! Not all signals scream sell
Interestingly, the Fund Flow Ratio dropped to 0.053, implying that fewer transactions are going to exchanges relative to total network activity. In short, not everyone is dumping.
Source: CryptoQuant
As expected, if less BTC is flowing into exchanges, fewer coins are readily available to be sold.
On top of that, Bitcoin’s scarcity surged to reach a monthly high of 646.21, as evidenced by the rising Stock-to-Flow ratio.
Source: Santiment
Can bulls hold a downward spiral?
According to AMBCrypto’s analysis, Bitcoin experienced a strong downward trend as investors offloaded their holdings while others took a step back from the market.
As a result, Bitcoin’s Directional Movement Index (DMI) declined to 14 while Negative Index surged to 21. Likewise, its Relative Vigor Index declined to -0.19, further confirming weakening momentum.
Source: TradingView
When momentum indicators are set in such a manner, they signal a strong downtrend and weakened upward momentum.
If market sentiment remains negative with mounting selling pressure, Bitcoin could drop again and find support around $110k.
However, if those taking a step back in the market rise, Bitcoin may stabilize and trade within a consolidation range of $113k and $117k.
