Binance Traders Show Buying Power Amid BTC Consolidation
Binance has seen a notable increase in its Buying Power Ratio, which measures the balance between stablecoins flowing in and Bitcoin flowing out of the exchange. This metric, which has recently become a key indicator for assessing trader activity, signals a possible shift in sentiment toward a bull market.
The principle of the metric is quite simple: an increase in the inflow of stablecoins means an increase in the potential purchasing power of users, and the withdrawal of bitcoin indicates a desire to transfer assets to long-term storage. The simultaneous movement of these factors is historically associated with the formation of optimistic price expectations.
According to the latest data, the Buying Power Ratio on Binance has sharply increased into the positive zone. According to experts, this coincided with the period of Bitcoin consolidation, which suggests that market participants are preparing for new purchases. Users clearly prefer to accumulate liquidity in stablecoins and protect BTC from possible short-term fluctuations.
The growth of stablecoins on Binance's balance sheet forms a reserve of funds for future transactions. At the same time, the active withdrawal of bitcoins reduces the supply on the exchange and reduces the pressure from sellers. Together, these factors create conditions for possible price growth.
Experts note that such investor behavior indicates strengthening confidence in the prospects of Bitcoin (BTC). The trend could become a catalyst for the next upward impulse, especially if the consolidation ends with a breakout of key resistance levels.
Such movements have previously become harbingers of the beginning of new ascending cycles. However, analysts emphasize that the final confirmation of the bullish scenario will require an increase in trading volumes and the price going beyond the current range.
Source: cryptonews.net
