Binance signals early Bitcoin buying as market sentiment hits record low
CryptoQuant and Binance data show Bitcoin’s seven-day net taker flow has flipped from heavy net selling to modest net buying, suggesting early stabilization after a month of aggressive sell-pressure. Binance’s cumulative 7-day taker flow recovered from about -$4.9B of net selling in early February to roughly +$0.32B, and the taker sentiment ratio moved from around -3% into positive territory. The shift is visible across major exchanges, with Binance showing a stronger net-buying signal than peers. BTC price has stabilized roughly 20% above recent 15‑month lows near $59,000 but remains below key resistance around $69,000. Exchange-level indicators still show divergence: the Coinbase Premium Index remains largely negative, implying weaker U.S. spot demand versus Asia. Market sentiment, however, is deeply bearish — the Crypto Fear & Greed Index plunged to 5/100 (extreme fear), one of its lowest readings on record. Traders should note the mixed signals: taker flow improvement hints at reduced selling pressure and potential short-term support, while extreme fear readings and premium spreads warn of fragile sentiment and downside risk if buying momentum fades.
Neutral
The news presents mixed signals that justify a neutral market view. Positive: CryptoQuant shows a clear reversal in seven-day net taker flow from deep net selling (-$4.9B) to modest net buying (+$0.32B), indicating reduced sell-side aggression and early stabilization across exchanges—especially Binance. This can support short-term price consolidation or modest upside as liquidation pressure eases. Negative: Key sentiment and demand indicators remain weak. The Crypto Fear & Greed Index is at an extreme low (5/100), signaling pervasive risk aversion. The Coinbase Premium stays negative, implying U.S. spot demand lags Asia and that selling pressure may persist if regional demand doesn’t pick up. Price remains below the critical $69,000 resistance — a failure to reclaim that level could lead to renewed selling. Historical parallels: previous episodes where taker flow improved while sentiment remained at extremes (e.g., post‑drawdown recoveries) often produced short-lived bounces followed by consolidation until broader sentiment and on‑chain demand recovered. Trading implications: near-term traders can look for mean-reversion or short squeeze setups if net buying persists, but should keep tight risk controls given fragile sentiment. Longer-term investors should wait for confirmation via sustained positive taker flow, rising premiums, and a move back above key resistance before assuming a bullish trend resumption.