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\n\t\t\t\t\t\t\t\t\tAverage BTC deposit volume on Binance has jumped above 0.9, a level that historically signals mounting sell intent.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
Bitcoin (BTC) momentarily fell below the $90,000 mark yesterday for the first time in seven months, a 29% collapse from its October high.<\/p>\n
Now, some market observers are saying this drop is not a simple correction, with on-chain data showing a troubling build-up of selling pressure on major exchanges, suggesting the market has not yet found a true bottom.<\/p>\n
A detailed analysis from CryptoQuant indicates<\/a> that three key on-chain metrics are in a critical state. First, the Average Bitcoin Deposit Volume on Binance has climbed past a critical threshold of 0.9. Historically, spikes in this metric have come before negative price reactions, as it signals a growing intent among investors to sell their holdings.<\/p>\n Second, the total Bitcoin reserves held on Binance have ballooned to over 580,000 BTC. Analyst CoinDream stated that a large accumulation of coins on an exchange often means there\u2019s potential sell pressure waiting to be unleashed.<\/p>\n This trend usually acts as a persistent bearish weight on the market unless it encounters equally strong buyer demand. The expert noted that recent increases in these reserves have consistently correlated with periods of price weakness.<\/p>\n Finally, data for the network-wide Net Exchange Flows showed that more than 5,000 BTC hit exchanges yesterday, marking the biggest sell pressure since the flagship cryptocurrency initially broke below the $110,000 level.<\/p>\n CoinDream concluded that selling pressure is accelerating while buyer demand is conspicuously absent. According to them, a genuine market bottom is typically characterized by strong demand inflows, which current indicators are still not showing.<\/p>\n \u201cCurrent on-chain data, such as market buy volume and other demand indicators, do not yet signal a bottom,\u201d they wrote. \u201cCaution is advised, as further downside remains likely.\u201d<\/p>\n<\/blockquote>\n The bearish on-chain outlook has come within a brutal market-wide correction. BTC was trading around $90,700 at the time of writing, down 5.4% in the last 24 hours and almost 14% in the past week. This drop is part of a wider wipeout of more than $1.1 trillion, described<\/a> by some as a \u201cstructural reset\u201d for the industry.<\/p>\n The negative momentum is being felt across technical indicators, with Bitcoin decisively breaking<\/a> below its weekly 50-period Exponential Moving Average (EMA), a key support level that held throughout the bull market, adding credence to the bearish structure.<\/p>\n Furthermore, experts like CryptoQuant CEO Ki Young Ju added<\/a> that institutional demand has cooled, with the Coinbase Premium at a nine-month low and spot ETFs experiencing sustained outflows.<\/p>\n Despite the grim picture, some see a potential for a short-term reprieve. A separate market update from NovAnalytica suggested that aggressive taker sell volume may be exhausted<\/a>, potentially creating an entry zone for large buyers.<\/p>\nYou may also like:<\/h3>\n
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A Broader Market Backdrop of Fear<\/h2>\n
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