According to a recent CryptoQuant Quicktake post by contributor Arab Chain, fresh data from the Binance Whale-to-Exchange Flow indicator suggests that BTC may soon experience additional downside pressure.
The analyst noted that despite growing retail participation in the BTC market, persistently high whale inflows into Binance – combined with a declining Bitcoin price – signal that the market could be entering a technical correction phase.
Arab Chain shared the following chart, where the purple zone shows that whale inflows to Binance remained consistently high throughout July and early August. At the same time, the drop in BTC price reflects a distribution pattern, where whales begin unloading BTC on exchanges following a sharp rally.
Although there were no extreme spikes, whale inflows into Binance stayed elevated in the $4 billion to $5 billion range, indicating that these large holders are actively moving BTC onto the exchange – often a precursor to major sell-offs.
The fact that these inflows remain high on Binance despite the drop in BTC price suggests that either whales are still selling their holdings on the exchange, or they are waiting for a price rebound to exit the market.
Similarly, the light blue area in the chart shows a notable increase in retail inflows to Binance during late July and early August. Historically, such late-stage retail participation often marks the final phase of a bullish cycle, providing exit liquidity for whales. The analyst concluded:
Despite the rise in retail participation, the market shows signs of internal weakness, with sustained whale inflows to Binance and loss of upward momentum. If this behavior continues, the market may be entering a medium-term correction phase.
