Analysis Company Issues Bitcoin Warning: “It Could Still Test These Levels”

While Bitcoin remains stagnant, analysts on on-chain analysis platforms have noted that a sustained bottom in the market has yet to be confirmed. Nansen reported that the possibility of Bitcoin retesting the $52,000 to $58,000 region remains.

According to the company, this week’s Federal Reserve interest rate decision and Strategy’s second-quarter financial results are among the key catalysts that could determine Bitcoin’s next direction.

CryptoQuant data showed a significant divergence between individual investors and whales in Bitcoin transfers to Binance. According to Binance Whale to Exchange Flow data, the total value of Bitcoin sent to the exchange by whales over 30 days dropped from approximately $7 billion on June 12th to $3.9 billion by July 27th. This represents a decrease of approximately 44.3%.

Individual investor inflows, however, remained more resilient. Total Bitcoin inflows from individual investors over the past 30 days fell by 22 percent, from approximately $10 billion on June 5th to $7.8 billion.

With the latest data, the amount of Bitcoin sent to Binance by individual investors has nearly doubled compared to whale inflows. The difference between the two groups is estimated at $3.9 billion.

CryptoQuant stated that this divergence indicates a change in the structure of Bitcoin transfers to Binance. Accordingly, individual investors are currently much more active in sending Bitcoin to the exchange compared to whales.

However, the company added that the stock market entries should not be interpreted as direct selling pressure.

*This is not investment advice.