"Binance Sell Pressure Surges: Bitcoin's Downward Spiral Continues"

Bitcoin's price has been on a downward trajectory, falling from its March 2021 all-time high of $109,000 to its current level below $82,000, a significant 24.6% drop. Amid this bearish trend, CryptoQuant contributor EgyHash has highlighted a concerning development on Binance, one of the world's largest crypto exchanges, which could further pressure Bitcoin's price.

EgyHash notes that Binance is witnessing a steady rise in key metrics that indicate growing sell-side activity. The 7-day moving average of mean coin inflows into Binance is increasing, suggesting that investors are making larger, more frequent deposits. This uptick in inflows often precedes heightened selling activity, as it indicates that more coins are becoming available on the exchange's order books.

Adding to this, the "Bitcoin: Exchange Inflow (Top10)" metric, which tracks the total coin volume of the top ten largest inflow transactions, has reached levels not seen in almost a year. This surge suggests that significant amounts of Bitcoin are being moved onto Binance, potentially with the intent to sell. Furthermore, Binance's Bitcoin reserves are climbing, returning to levels last observed in November of the previous year. A rise in exchange reserves typically reflects an increase in coins held by the platform, which can signal more selling pressure.

Supporting this view is the Taker Buy/Sell Ratio, which reveals that sell orders currently outweigh buy orders, painting a bearish picture for the market. The accumulation of these factors—rising inflows, growing exchange reserves, and a dominant bearish sentiment—could indicate that Bitcoin's downward trajectory may continue.

While sell pressure on exchanges is a significant factor, other indicators are offering a broader perspective on the market's overall sentiment. Another CryptoQuant analyst, tugbachain, recently discussed the Net Unrealized Profit/Loss (NUPL) metric, which tracks the network's unrealized profits and losses to determine whether investors, on average, are holding Bitcoin at a gain or a loss. According to tugbachain, the NUPL currently sits just below the 0.50 support level. Historically, a reading below this threshold has coincided with bearish phases, while a recovery above it can suggest renewed buying interest. If Bitcoin's monthly close for February exceeds this 0.50 mark, it could indicate