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An imminent rebound for Bitcoin?
The new on-chain data has sparked new optimism among Bitcoin traders regarding the direction of the asset. After a long period of stagnation, the largest cryptocurrency by market capitalization could trigger another bull run similar to those recorded this year. Firstly, the scarcity of Bitcoin on Binance has decreased significantly, reflecting a change in trading dynamics.
The index has now followed the Uptober trend projected at the beginning of the month, moving from neutral levels to the highest point at the end of October. This underlines whales’ appetite to accumulate crypto assets despite slight headwinds. Binance Bitcoin scarcity is often used by traders to gauge the supply available on the exchange and determine potential sales volume. While it does not fully capture real-time flows, it does point out the trend of sentiment within a given period.
Binance is the largest exchange by trading volume and is frequently cited by on-chain analysts. Traditionally, large outflows from Binance to other custodians indicate longer holdings, driving sentiment, while inflows are tied to potential sales. The recent short squeeze on Binance shows a whale doubling down on its accumulations and pulling funds out of various exchanges.
“This is generally considered a long-term positive signal supporting the likelihood of a continued rise in the medium term, despite short-term price fluctuations, as buyers appear to be rushing to acquire Bitcoin on the market. These surges are usually associated with positive news or sudden capital inflows. Scarcity alone is not enough to drive up prices; It must be accompanied by a new genuine demand.”
Second, traders expect a reversal of the slowdown because whales often take retail positions after a decline. The first signs of “buying the dip” have emerged from institutional investors who have set their sights on profits in the coming weeks. This week, Bitcoin whales opened new long positions in addition to new entries. While the all-time high could be a short-term stretch, bulls marked the $114,000 mark to set the stage for broader growth. Furthermore, these traders also recommend new entries to spot Bitcoin ETFs.
