Cryptoquant analyst DarkFost suggests that the recent downward trend in Bitcoin may be nearing its end as it appears to ease sales pressure from large owners of vinance.
In a March 12 post on X, DarkFost highlighted the decline in Binance's BTC whale ratio. This measured the share of the top 10 inflows compared to total inflows. Strong whale sales activities are shown at high proportions and often cause short revisions.
However, the recent downward trend in this metric indicates that large owners are reducing sell orders. This is usually a sign of an imminent market recovery.
Bitcoin (BTC) experienced a dramatic decline, falling almost 30% from its all-time high in January, and plunged to a four-month low of around $77,000 on March 11th.
According to X's encrypted post, in the last 30 days, large holders have purchased almost 65,000 BTC in the last 30 days. This means that current prices are considered favorable entry points by institutional investors.
The market is also affected by other influences. The recent announcement of the US government's strategic Bitcoin reserve appeared initially optimistic. However, it was later revealed that these holdings came primarily from seized assets rather than aggressive acquisitions.
This increases investor uncertainty and leads to macroeconomic concerns like record leaks from Bitcoin ETFs and possible tariffs. The traditional market, especially the Nasdaq, has continued to have a strong impact on Bitcoin prices.
Bitmex co-founder Arthur Hayes tackled the market in a March 11th post on X. He predicts Bitcoin will fall 36% from an all-time high before it opens its next rally.
But he argues that true recovery requires more than just crypto market dynamics. According to Hayes, the stock market recession is part of the larger financial changes needed.
To date, the ongoing accumulation by large investors and a decline in the whale ratio suggests that sales pressure is declining. Bitcoin, which is trading at $83,234 at the time of press, could be on the verge of recovery if this pattern applies.
