Bitcoin Scarcity Index On Binance Flips Green As Whales Enter Accumulation Mode
Bitcoin whales are sending positive signals to the entire market after a prolonged period of sideways trading. Activities on centralized exchanges have shown a string of outflows this week, with on-chain metrics indicating new upward trends. Despite a slight price pullback, several analysts have projected a rebound, citing historical data.
An Imminent Rebound For Bitcoin?
New on-chain data has sparked fresh optimism among Bitcoin traders concerning the asset’s direction. After an extended period in the doldrums, the largest crypto by market cap could ignite another bull run similar to those recorded this year. First, Binance’s Bitcoin scarcity has declined significantly, reflecting a shift in trading dynamics.
The index has now followed the Uptober trend as projected at the start of the month, surging from neutral levels to the highest point in late October. This underscores whale appetite to accumulate crypto assets despite slight headwinds. Traders often use Binance’s Bitcoin scarcity to gauge the available supply on the exchange and determine the potential sales volume. While it doesn’t entirely capture real-time flows, it points to the sentiment trend 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, which propel sentiment, while inflows are linked to potential sales. The recent scarcity on Binance shows a whale doubling down on accumulations and moving funds out of several exchanges.
“This is generally considered a positive long-term signal that supports the likelihood of continued upside in the medium term, despite short-term price fluctuations, as buyers appear to be racing to acquire Bitcoin in the market. Such surges are often associated with positive news or sudden capital inflows. Scarcity alone is not enough to drive prices higher; it must be accompanied by genuine new demand.”
 Secondly, traders expect a reversal of the downturn because whales often seize retail positions after a dip. Early signs of “buying the dip” have emerged from institutional investors who have set their sights on gains in the coming weeks. This week, Bitcoin whales opened new long positions in addition to new inflows. While the all-time high might be a short-term stretch, bulls flagged the $114k mark to set the stage for wider growth. Furthermore, these traders also tip renewed inflows to spot Bitcoin ETFs.
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