- $5 billion in Bitcoin inflows on Binance hint at imminent large-scale whale sales.
- Late retail investor participation often signals the final rally phase.
- Bitcoin price momentum fades; correction to $112K possible if trend continues.
Bitcoin's rally is currently “under threat” due to increased selling by whales and weak participation from retail investors, according to an anonymous CryptoQuant analyst known as Arab Chain. The expert warns that the first cryptocurrency is likely nearing the end of its bullish cycle.
This outlook is supported by the Whale to Flow indicator on Binance.
In July and August, around $5 billion worth of bitcoins entered the exchange, a pattern often preceding large-scale sales by major holders.
At the same time, retail investors have increased their deposits on Binance, as reflected in a light blue area on the analyst’s chart, showing elevated activity at the end of July and early August. Historically, such late involvement of small investors aligns with the final stages of a market rally.
“When small investors get involved this late, it’s usually a sign of the end of the rally – whales are using them to take profits,” Arab Chain explained.
Despite the influx of funds, momentum is fading. Bitcoin’s price is currently moving sideways, signaling that overall consumer demand may be drying up.
If this trend continues, increased selling pressure could trigger a price correction to around $112,000. At the time of writing, Bitcoin is trading near $116,586.
This analysis highlights the delicate balance in the Bitcoin market, where large holder behavior combined with changing retail sentiment can strongly influence near-term price directions.
