After several weeks of stability within a narrow price range, Bitcoin has fallen below the critical $115,000 threshold, reaching a local low of approximately $112,200. This decline has created a split among market analysts and investors. Some experts consider this movement a healthy correction that may pave the way for a renewed uptrend, while others caution that it could indicate the onset of a prolonged bearish trend if essential support levels do not hold.
In a related development, prominent analyst Darkfost has pointed out a notable change in exchange activity. Recent data shows that Bitcoin inflows to Binance have been on the rise since early July, reversing a long-standing downtrend that had persisted since March. As Binance is the world's largest cryptocurrency exchange by trading volume, this increase in inflows serves as an important indicator of changing investor behavior. The implications of this trend—whether it signifies an upcoming wave of selling or reflects portfolio rebalancing—remain to be evaluated.
The coming days are critical as Bitcoin approaches its lower demand zones, with market sentiment poised to react to these new developments. Darkfost's analysis reveals that Bitcoin inflows to Binance have increased steadily from around 5,300 BTC per day in early July to 7,000 BTC currently. Although this rise is gradual, it signifies a notable reversal from the previous downtrend, hinting at shifts in investor strategies as they adapt to changing market conditions.
As the largest global cryptocurrency exchange, Binance acts as a vital gauge for overall market sentiment. With over 250 million users and billions of dollars in daily transactions, changes in Bitcoin inflows on this platform often reflect broader trends within the cryptocurrency market. Historically, rising inflows have correlated with increased trading activity, whether due to profit-taking, portfolio adjustments, or expectations of market volatility. Some analysts view this trend of increasing inflows as an early indicator of potential market turbulence or significant macroeconomic changes, suggesting that traders might be positioning themselves for price fluctuations or hedging against possible risks.
Currently, Bitcoin is trading at $112,477, having broken down from its two-week consolidation phase. The price has lost the critical support level of $115,724, which has now become immediate resistance. This breakdown signifies a notable shift in momentum, as BTC tests the 100-day simple moving average (SMA) at $114,944, which it failed to maintain. The next significant support level is near the 200-day SMA at $110,348, a point that could prove crucial for bulls looking to regain market control.
The trading volume has surged during this decline, reflecting strong selling pressure as Bitcoin approaches the $112,000 mark. Should the price fail to stay above this level, a further decline towards the psychological $110,000 threshold seems probable, with the possibility of a deeper correction towards previous accumulation zones from early July.
Despite the bearish outlook in the short term, bulls still have an opportunity to regain momentum if they can quickly push Bitcoin back above $115,724 and establish a consolidation above the 50-day SMA at $117,631. Until then, market sentiment remains cautious as investors monitor for signs of demand absorption or additional declines driven by liquidation.
