2 Key Binance Metrics Show Bitcoin's Correction Phase Could Be Over

• Analysts see a potential market reset forming as short-term capitulation gives way to long-term accumulation.
• Record Bitcoin outflows from Binance suggest investors are moving holdings to private wallets.
• Morgan Stanley strategist Danny Galindo says the crypto market has entered its “fall season,” signaling a phase for profit-taking.

Bitcoin’s (BTC) price may be stabilizing after a wave of short-term selling coincided with record outflows on Binance.

On-chain data from CryptoQuant shows signs of a potential market reset with Bitcoin supply tightening as short-term traders sell at a loss on Binance and longer-term investors accumulate, a combination that analysts interpret as bullish.

Short Term Pain

According to on-chain analysts cited by CryptoQuant, short-term holders have been selling at a loss over the past weeks, a pattern historically linked to the final phase of market corrections. “Historically, when short-term holders are selling at a loss, it often corresponds to a cleansing phase for the market that can mark the final stage of a correction,” noted crypto researcher @Darkfost_Coc.

Long Term Gain

In parallel, Binance has seen massive BTC outflows, which suggests renewed accumulation by longer-term investors. “Overall, this spike should be viewed as a bullish signal. When BTC supply on exchanges declines, selling pressure diminishes, creating a tighter supply environment,” said @xwinfinance.

The outflows indicate that traders are moving Bitcoin off exchanges into cold wallets or private holdings, reducing the available supply on platforms and potentially supporting price stability. Analysts say such patterns often precede upward price moves once selling by short-term traders slows.

Is Winter Coming?

According to a strategist at Morgan Stanley, the crypto market has entered its “fall season.” 

“We are in the fall season right now,” investment strategist Danny Galindo said in the firm’s Crypto Goes Mainstream podcast. “Fall is the time for harvest. So, it’s the time you want to take your gains. But the debate is how long this fall will last and when the next winter will start.”

He pointed to Bitcoin’s historical “three-up, one-down” pattern as evidence of cyclical cooling ahead. BTC’s price fell 1.6% in the last 24 hours, nearly 20% below its all-time high of more than $126,000 seen in October. On Stocktwits, retail sentiment around the apex cryptocurrency trended in ‘neutral’ territory over the past day.

Read also: Jim Cramer Says The ‘Year of Magical Investing’ Is Ending – ‘Too Much OpenAI IOUs Flying Around’

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on