Three Red Warning Signs Flashing on Binance
According to analyst COINDREAM, three major indicators on Binance are simultaneously flashing red — clear signs that short-term investor confidence is collapsing.
First, the funding rate for perpetual futures contracts has remained negative for three consecutive days — a rare streak in 2025. This suggests that bearish traders are dominating. “When the world’s largest derivatives exchange turns bearish, it can drag down the entire market,” COINDREAM warned.
Second, deposit inflows to Binance have surged, based on a seven-day moving average, even as prices continue to fall. This trend often indicates that traders are transferring assets to exchanges in preparation for selling, adding further downward pressure on prices.
Third, the market sell order ratio has surpassed the 0.52 mark — a level usually seen near market tops. The fact that this ratio remains elevated even after last week’s price collapse suggests that selling sentiment is still gripping the market.
Confidence Shattered After the $19 Billion Meltdown
The cautious stance among investors is unsurprising following the devastating October 10 crash, which saw over 1.6 million traders liquidated and $19 billion in market value erased almost overnight.
Although Binance quickly rolled out user compensation programs and prices partially rebounded, analysts warn that this may only be a short-lived recovery after a massive shock.
Market expert Doctor Profit noted that the crash “wiped out extreme leverage” from the system, bringing bulls and bears to a temporary balance. However, new data from Binance suggests that bearish forces are regaining control, as traders remain hesitant to re-enter the market.
Markets Await Broader Economic Signals
Currently, Bitcoin and major altcoins have recovered slightly but still trade well below pre-crash levels. Analysts believe the market’s next move will largely depend on U.S. stock market performance and other macroeconomic indicators in the coming weeks.
Some optimists predict that Bitcoin could rebound if key support levels hold firm. Yet, COINDREAM warns that in the short term, the easiest path for Bitcoin may still be downward.
