Bitcoin Rally Faces Caution from CryptoQuant Analysis

CryptoQuant's latest analysis has cast doubt on the sustainability of the current Bitcoin price uptick. According to their findings, the recent rebound in Bitcoin prices may not signal a lasting change in market direction.

The report highlights that limited fund flows into Binance indicate tepid selling pressure. This is evidenced by the low Fund Flow Ratio for Bitcoin on Binance, which measures the volume of Bitcoin moving into Binance relative to the exchange's total Bitcoin reserves. The recent data shows this ratio at 0.012, a historically low level.

This suggests that there is no large-scale increase in Bitcoins being sent to the exchange for imminent sale. Given Binance's role as a high-liquidity venue favored by major traders, the muted fund flow is understood as a sign that aggressive selling has not materialized, despite recent price volatility.