On-chain data from CryptoQuant shows signs of a potential market reset with Bitcoin supply tightening as short-term traders sell at a loss on Binance and longer-term investors accumulate.
Bitcoin’s (BTC) price may be stabilizing after a wave of short-term selling coincided with record outflows on Binance.
On-chain data from CryptoQuant shows signs of a potential market reset with Bitcoin supply tightening as short-term traders sell at a loss on Binance and longer-term investors accumulate, a combination that analysts interpret as bullish.
Short Term Pain
According to on-chain analysts cited by CryptoQuant, short-term holders have been selling at a loss over the past weeks, a pattern historically linked to the final phase of market corrections. “Historically, when short-term holders are selling at a loss, it often corresponds to a cleansing phase for the market that can mark the final stage of a correction,” noted crypto researcher @Darkfost_Coc.
Long Term Gain
In parallel, Binance has seen massive BTC outflows, which suggests renewed accumulation by longer-term investors. “Overall, this spike should be viewed as a bullish signal. When BTC supply on exchanges declines, selling pressure diminishes, creating a tighter supply environment,” said @xwinfinance.
The outflows indicate that traders are moving Bitcoin off exchanges into cold wallets or private holdings, reducing the available supply on platforms and potentially supporting price stability. Analysts say such patterns often precede upward price moves once selling by short-term traders slows.
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