Price is currently positioned below the SMA (14, 30, 50) averages. This indicates that the funds entering Binance are weak relative to price. We can infer that BTC flowing into the exchange is not intended for accumulation, but rather for selling purposes. Demand remains weak, and this structure does not generate upward momentum.
All moving averages of the Fund Flow Ratio appear flat to slightly downward sloping. Even if price moves higher, there is not enough demand to shift the primary trend upward. Because price is not advancing, capital inflows are not increasing either. There are no new buyers only existing liquidity changing hands. Even if price rises, such moves would not be sustainable. As consistently emphasized, although short term relief rallies may occur, the primary trend is likely to continue downward.
Another notable point on the chart is the presence of sharp upward and downward spikes, while the average value fails to expand. This suggests intense intraday trading activity dominated by scalping and short term trades. There is no clear position building; investors remain indecisive. Volatility exists, but it lacks the strength to reverse the trend.
A clear divergence between price and Fund Flow Ratio is evident. BTC is currently trading around $87K. While price declines, the Fund Flow Ratio does not show a corresponding strong increase. This indicates that strong buying interest is not emerging at support levels. Bitcoin has not yet developed a cheap perception, and whales are still not willing to take risk. Based on this data, a major rally should not be expected. Instead, corrective rebound moves within a sideway to downward consolidation are more likely, as price continues to encounter selling pressure on every upward move.
Without sustained Fund Flow Ratio strength above the 0.02 level, any BTC price increases should be viewed as selling opportunities.
Written by PelinayPA
