Bitcoin Whales Signal Potential Market Rebound as Binance Selling Pressure Eases

Large Investors Accumulate BTC While Smaller Buyers Remain Cautious

Bitcoin whales are quietly returning to the market, suggesting a potential rebound to $80,000, even as smaller investors hesitate amid ongoing market uncertainty.

Whales Scale Back Selling on Binance

Fresh on-chain data from CryptoQuant indicates a notable decline in selling pressure from major Bitcoin holders on Binance. According to analyst Darkfost, the proportion of large whale inflows to the exchange has been steadily dropping.

“Monitoring whale behavior has consistently provided valuable insights into potential market movements,” he explained in a March 12 blog post. Given Binance’s dominant trading volumes, analyzing its whale activity serves as a crucial indicator for broader market trends.

Since Bitcoin hit its latest all-time highs in mid-January, the exchange whale ratio has been in a downward trend. This suggests that large investors are reducing their selling pressure, a factor that could contribute to stabilizing the current market correction. Historically, declining whale sell-offs have been linked to bullish reversals.

“If this trend of diminishing selling pressure continues, it could help end the current correction and potentially signal a market rebound,” the report states.

Hesitation at $80,000 Amid Weak Demand

Despite whale accumulation, overall market sentiment remains cautious, particularly among short-term holders (STHs) - those who have held Bitcoin for less than six months.

According to Glassnode’s latest “The Week Onchain” newsletter, speculative investors are showing reduced demand at current price levels. The firm analyzed cost basis trends and found that short-term buyers, especially those holding BTC between one week and one month, now have a lower cost basis than those holding for one to three months.

This shift indicates that macroeconomic uncertainty has shaken investor confidence, leading to lower capital inflows and increasing the likelihood of further selling pressure.

“With Bitcoin prices dropping below $95,000, this model also confirmed a transition into net capital outflows,” Glassnode analysts noted. “New buyers are now hesitant to absorb sell-side pressure, reinforcing the shift from post-ATH euphoria into a more cautious market environment.”

Will Whales Lead the Next Bitcoin Surge?

While smaller investors remain wary, Bitcoin whales appear to be positioning themselves for a potential rebound. If the downward trend in Binance whale selling continues, it could provide the necessary support for Bitcoin to regain bullish momentum. However, with short-term traders still hesitant, the market remains at a crossroads, awaiting its next major move.