Yesterday, Bitcoin (BTC) once again faced rejection around the $120,000 resistance level after briefly reaching a high of $119,760. At the time of writing, the top cryptocurrency is trading slightly lower at $118,900. However, a sharp increase in whale inflows to Binance threatens to trigger further downside pressure for the digital asset.

Binance Whales Ramp Up Bitcoin Deposits

According to a recent CryptoQuant Quicktake post by contributor BorisVest, Bitcoin whale activity on Binance has increased significantly in recent days. In particular, the Binance Whale Inflow metric recorded a notable spike on July 25, signalling rising institutional participation in exchange deposits.

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On that day alone, the 30-day cumulative inflow to Binance surged by $1.2 billion, fuelling short-term selling pressure across the market. Data from CoinGlass shows that between July 24 and July 25, roughly $141 million worth of BTC long positions were liquidated as a result.

It’s worth noting that alongside this spike in whale deposits, retail investors have also been moving their holdings to exchanges. However, their participation remains relatively low in comparison, hinting that recent selling pressure is predominantly whale-driven.

The following chart illustrates that while retail inflows have been trending upward for weeks, the sudden increase in whale deposits has introduced additional fragility into Bitcoin’s price structure. 

The surge in Binance whale inflows came just before Bitcoin was rejected at the critical $120,000 level. Following this rejection, BTC retraced to the $115,000–$116,000 range, which is now acting as short-term support. The analyst noted:

This area is now acting as a short-term support zone. If it fails to hold, a move toward the $110K level becomes increasingly likely. On the other hand, if Bitcoin can bounce strongly from this region, there is still potential to retest $121K and even attempt a new all-time high.

BorisVest concluded that BTC’s near-term price trajectory will be determined by how well the market absorbs whale sell-off. Meanwhile, fellow crypto analyst Titan of Crypto remarked that if BTC decisively breaks through the $119,900 level, then it could eye new all-time highs (ATH).

What Else Does Exchange Data Suggest?

Whale inflows aren’t the only factor spooking investors. BTC reserves on centralized exchanges also recently reached a one-month high, suggesting that some holders may be anticipating a temporary pullback or consolidation phase before resuming the uptrend.

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That said, Binance’s share of BTC spot trading volume recently saw a sharp rise, suggesting that a rally may be on the horizon for the world’s leading cryptocurrency. At press time, BTC trades at $118,926, up 0.4% in the past 24 hours.

Featured image from Unsplash, charts from CryptoQuant, X, and TradingView.com

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Bitcoin continues to dominate the digital asset space, maintaining its position as the most established and widely adopted cryptocurrency. However, according to Matt Hougan, Chief Investment Officer at Bitwise Asset Management, investors should consider broadening their exposure to include a variety of crypto assets, especially as blockchains evolve beyond just currency use cases.

Hougan recently commented on Ethereum’s significant price recovery, noting a 53% rebound from its April lows and a 37% increase within a single week.

This performance comes after months of underperformance and coincides with recent blockchain upgrades and a wider shift toward risk-on market conditions. In light of this, Hougan addressed the increasingly common question among investors: is it time to look beyond Bitcoin?

Crypto as a General Purpose Technology

In drawing comparisons between today’s blockchain market and early internet adoption, Hougan pointed to how investment strategies from the early 2000s offer a relevant historical lesson. He referenced the example of 2004, when Google led the search engine industry and appeared to be the dominant bet on the internet’s future.

While Google became a highly successful investment, Hougan emphasized that other sectors, such as e-commerce (Amazon), video streaming (Netflix), and software-as-a-service (Salesforce), also generated substantial long-term returns.

Applying the same thinking to crypto, Hougan suggested that while Bitcoin may serve as a decentralized monetary system or “digital gold,” other blockchains are designed for broader utility.

Ethereum enables programmable smart contracts, Solana and Avalanche focus on high-throughput performance for decentralized applications, and middleware solutions like Chainlink support infrastructure across multiple networks. Hougan’s view is that these differing purposes present differentiated return profiles, rather than just direct competition.

He also noted that investors do not need to commit to a single crypto thesis. While some may favor Bitcoin solely as a hedge against fiat debasement, others who believe blockchains will transform asset transfer, application deployment, or financial infrastructure may benefit from holding a mix of assets.

This basket approach, he argued, is well-aligned with how general purpose technologies historically produce a range of winners across verticals.

Passive Exposure May Outperform Active Picks

To reinforce his perspective, Hougan pointed to performance data over the last five years for assets like Bitcoin, Ethereum, Solana, and Chainlink—each demonstrating different periods of outperformance. Predicting which will lead through 2030 remains uncertain, and that uncertainty is exactly why he advocates diversification.

He concluded by citing a compelling statistic: over the past two decades, 97% of actively managed equity funds underperformed their benchmarks. For an industry as dynamic and unpredictable as crypto, the implication is that trying to identify individual long-term winners could be more difficult than many expect.

In summary, while Bitcoin remains the cornerstone of most crypto portfolios, Hougan believes that blockchain’s versatility as a technology calls for broader exposure. His advice to investors: focus less on picking the next breakout asset and more on positioning for the entire crypto ecosystem’s potential.

Featured image created with DALL-E, Chart from TradingView

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New data from the market intelligence firm Glassnode suggests that Bitcoin (BTC) could be nearing an early bear market.

In a new thread on the social media platform X, Glassnode says that the crypto king is flashing signs that historically predate its entering into a bearish phase.

According to the crypto analytics platform, short-term holders hanging on to unrealized losses relative to BTC’s current price are analogous to the early bear market conditions present during Bitcoin’s previous cycles.

“Bitcoin unrealized losses normalized by percentage drawdown show that short-term holders are already holding substantial losses relative to the current correction depth – comparable to early bear market conditions in past cycles.”

Glassnode goes on to note that while long-term holders are in profit, market conditions could cause them to see their profits dwindle, another sign of an upcoming bearish phase.

“On the other hand, long-term holders (LTH) are still broadly in profit, but as BTC top buyers age into LTH status, loss absorption may rise. Historically, this shift often marked the confirmation of a bear market, though no such regime is evident yet.”

Short-term Bitcoin holders are traders who have held on to their tokens for less than 155 days, while long-term holders are defined as those who have kept their digital assets inactive for 155 days or longer.

According to Glassnode, one metric, which measures the directional dominance of value flowing in or out of a network, shows that the top crypto asset by market cap is at a crucial crossroads in terms of market direction.

“Meanwhile, volatility-adjusted net realized profit/loss for BTC has reverted to its long-term median. This historically marks the boundary between bull and bear regimes, placing the market at a critical juncture for determining direction.”

Bitcoin is trading for $84,557 at time of writing, a fractional decrease during the last 24 hours.

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Prices of XRP have taken a heavy hit in the past week as the altcoin struggled to find a local bottom. During this period, XRP lost 10.51% of its value and traded to as low as $2.06. Amid this bleeding market, popular technical analyst Egrag Crypto has hinted at a potential bullish reversal hinged on certain conditions.

Inverse Head & Shoulders Pattern Signals Bullish Potential For XRP – Levels To Watch

In an X post on March 29, Egrag Crypto provided a positive outlook on the XRP market despite an ongoing downtrend. According to the analyst, a developing inverse head and shoulder pattern indicates the fourth largest cryptocurrency could soon experience a breakout.

The inverse head and shoulders formation is a common bullish reversal pattern signaling an impending shift from a downtrend to an uptrend. As seen in the chart below, It consists of a temporary price low (left shoulder) followed by a rebound, a deeper low (head) that marks the bottom, and another rebound leading to a higher low (right shoulder) compared to the head.

Notably, Egrag warns that this bullish pattern on the XRP daily chart is certainly valid until April 20, 2025. Furthermore, market bulls must avoid a daily close below $2 to retain the viability of this positive setup. However, a bullish rebound will only be confirmed following a decisive price surge above $2.65 which represents the neckline of the inverse head and shoulders pattern.

Thereafter, XRP would likely experience some substantial resistance at the $3.00 price zone. Moving past this barrier should propel a rise to around $3.20-$3.40, a close above which is described as a critical step sustaining this potential uptrend.

The Price Targets

According to Egrag, a breakout from the current bullish setup should result in XRP reaching a conservative price target of $3.70-$3.90 and establishing a new all-time high. However, the prominent altcoin could rise further to around $4.60. At this level, the crypto analyst explains price weakness could set in suggesting an incoming distribution among investors and potential price correction.

At the time of writing, XRP trades at $2.18 reflecting a minor gain of 0.91% in the past day. Meanwhile, the asset’s daily trading volume has declined by 10.28% indicating a potential waning of selling pressure and eventual price stability. Meanwhile, the US Securities and Exchange Commission is expected to terminate its 4-year long case against Ripple in May lifting a heavy regulatory cloud over XRP.

Featured image from Outlook Business, chart from Tradingview

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.