Binance Traders Show Increased Pessimism as Sell Orders and Deposits Surge
Recent data indicates a shift towards bearish sentiment among Binance traders, marked by a rise in sell orders and deposits following a major market downturn.
Traders on Binance, the largest cryptocurrency exchange globally, are growing increasingly skeptical as evidence shows rising sell orders and user deposits. Recent information from CryptoQuant analyst COINDREAM suggests that short-term confidence is wavering after last week’s significant market crash.
Market Metrics Indicate Fading Confidence
COINDREAM’s analysis highlights three critical indicators on Binance signaling potential trouble. Notably, the funding rates for perpetual futures have been negative for three consecutive days—a rarity this year.
“When the exchange with the largest derivatives trading volume shows bearish sentiment, it can have a negative impact on the overall market,” noted the expert.
Additionally, deposits to the exchange are increasing, even amidst falling prices, signaling considerable downward pressure if demand does not ignite timely support.
Perhaps most tellingly, the market sell orders’ percentage remains alarmingly high. Historically, sell volumes drop near price bottoms and peak over 0.52 at market tops. The current sell ratio on Binance, exceeding 0.52 even after major price drops, hints at intensifying selling sentiment.
Recovery Stalls Amid Economic Uncertainty
The cautious sentiment among traders isn’t surprising after the crypto market suffered its worst liquidation on October 10, which wiped out more than $19 billion and impacted over 1.6 million traders. Despite exchanges compensating affected users and some recovery in market losses, many analysts consider this event a substantial reset.
Doctor Profit commented that excessive leverage in the market has been reduced, creating a more equal footing for both bulls and bears. Yet the shifting behavior of traders on Binance suggests a reluctance to re-enter the market too hastily.
Bitcoin and leading altcoins have shown minor recoveries, but they remain significantly lower than pre-crash levels. Outlooks suggest that future price movements will depend heavily on broader economic indicators, particularly the performance of U.S. stocks. Some analysts predict that Bitcoin might even reach new highs if crucial support levels are maintained, but COINDREAM’s analysis hints that the asset may take a downward path in the near term.
