Bitcoin Short-Term Traders Cautious, Inflows to Binance Drop 75%

Bitcoin’s short-term traders are exhibiting a more cautious approach, as evidenced by a significant decrease in Bitcoin (BTC) inflows to Binance. This trend suggests a shift in market sentiment, with short-term holders (STHs) adopting a more neutral or hold-oriented stance. The reduction in BTC transfers to Binance, dropping to 6,300 BTC, contrasts with an average of 24,700 BTC sent to other exchanges, indicating a possible decrease in selling pressure on Binance.

This decline in activity from STHs, who typically drive market sentiment and influence selling pressure, reflects a shift towards profit-taking or loss-cutting decisions. The Short-Term SOPR and UTXO Age Band metrics show reduced movement, suggesting increased hesitation to sell. Following recent profit-taking, these holders appear to have entered a more cautious, hold-focused phase, which could lead to a more balanced or neutral market outlook in the near term.

The shift in STH activity and the decrease in BTC inflows to Binance may impact the exchange’s liquidity and trading volume, potentially influencing Bitcoin’s price stability. Meanwhile, the increase in BTC inflows to other exchanges hints at a change in trading preferences within the crypto community, moving from risk-taking to cautious restraint.

Bitcoin’s recent attempt to break above the 50-day Simple Moving Average (SMA) at $86,268 faced resistance, pushing the price back toward $84,211. At the time of reporting, the Relative Strength Index (RSI) at 46.82 indicated that the market was in a neutral to slightly bearish zone, suggesting that buying momentum remains weak. Additionally, the On-Balance Volume (OBV) was at -92.95 K, hinting at low trading volume and reduced buying pressure. If BTC fails to reclaim the 50-day SMA, it could retest support near the 200-day SMA at $88,049. Conversely, a successful breakout may set the stage for recovery.