Bitcoin (BTC) fell today below $115,000, the lowest price since August 6. This has raised concerns that Bitcoin’s bullish trend may be slowing. Binance Buying Power Ratio shows that BTC’s demand is likely to be waning. A deeper correction in price could result.
The Binance buying power ratio raises alarms
Crazzyblockk wrote in a CryptoQuant quicktake that the Binance Buying power ratio is a good indicator for overall market health. The analyst said that current readings point to possible declines in Bitcoin.
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The ratio is a measure of stablecoins inflows versus Bitcoin outflows at Binance. It shows how much capital is now available to purchase BTC, as compared with how much money is being removed from the exchange. The ratio is a reflection of strong liquidity and buying power, whereas a rapid drop indicates weakened demand and greater correction risk.
Recenty, the ratio has suffered a sharp decline. The analyst referred to this as a “textbook warning” BTC dropped in price just before. Bitcoin’s price dropped from $124,474 in August to $114,786 today.
According to the analyst, the ratio peaked on August 14 at 2,01 showing peak demand where more stablecoins than $1 for each BTC that is moved into cold storage.
In the following days – from August 16 to 17 – the ratio witnessed a sharp reversal, crashing to -0.81 within 48 hours. Binance’s buying power dropped as a result.
BTC then underwent an extended price correction. It fell 4.7% in the last seven days. At the time of writing, BTC is trading just slightly under $115,000 and its next significant support area lies at around $110,000. Crazzyblockk summarized:
Binance’s capital flows are a good early warning system. Capital flows can be used as an early warning. The falling Buy Power Ratio indicates that there is no liquidity left and a high risk of correction. For any serious analyst, monitoring Binance isn’t optional – it’s essential.
What will Bitcoin do in September?
What is Bitcoin? avoids The short-term cost model of the holder suggests that its next significant resistance is around $127,000. BTC could reach $140,000 if it breaks out strongly above this price.
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Crypto analyst KillaXBT has published a post on X. said BTC must hold above $115,787 to target the $125,000 – $127,000 range in September. The analyst cautioned that, even if Bitcoin starts the month at a new high, there is a chance it could fall. not guarantee A sustained upward momentum. BTC is currently trading at $114.988, down by 2.4% over the last 24 hours.
Charts from TradingView.com and CryptoQuant.com.
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Source: www.newsbtc.com
