Bitcoin Drops Below 115,000 USD as Binance's Buying Power Ratio Collapses

At the beginning of today, Bitcoin dropped below $115,000 for the first time since August 6, raising concerns that the bullish momentum of this cryptocurrency may be weakening. In this context, the (Binance Buying Power Ratio) indicates that demand for BTC may be weakening, potentially setting the stage for a deeper price correction. The Purchasing Power Ratio of Binance Causes Alarm According to a post on CryptoQuant Quicktake by contributor Crazzyblockk, the Binance Buying Power Ratio ( serves as a reliable indicator of the overall health of the market. The analyst explains that the current index indicates the likelihood of Bitcoin experiencing a fall. To explain, this ratio measures the inflow of stablecoin compared to the outflow of Bitcoin on Binance, essentially showing the amount of new capital available to buy BTC versus the amount of capital flowing out of the exchange. A rising ratio reflects strong buying power and liquidity, while a sharp decline signals weaker demand and greater adjustment risks.

Recently, this ratio has dropped significantly, prompting analysts to issue what they call a “textbook warning” just before the latest fall of BTC. This correction has caused Bitcoin to drop from a high of $124,474 on August 13 to a low of $114,786 earlier today. Analysts note that this ratio peaked at 2.01 on August 14, indicating that buying pressure peaked as more than 2 dollars of stablecoin entered the market for every 1 dollar of BTC transferred to cold storage.

In the following days – from August 16 to 17 – this rate saw a strong reversal, falling to -0.81 within 48 hours. As a result, buying power left Binance more than buying power entered, confirming that the main fuel source of the BTC market has run out. Subsequently, BTC has undergone a continuous price correction, falling 4.7% over the past seven days. Currently, the cryptocurrency is hovering slightly below the $115,000 mark, while the next major support level lies around $110,000. Crazzyblockk concludes: This analysis proves that Binance is the focal point of the market. The capital flow of this exchange is an early warning system. The Buying Power Ratio - BPS) decreasing signals a depletion of liquidity and high adjustment risk. For any serious analyst, monitoring Binance is not an option – it is essential. How Will Bitcoin Operate in September? If Bitcoin avoids sliding below $110,000, the short-term holding cost model indicates its next major resistance level is around $127,000. A strong breakout above this level could push BTC up to $140,000. In a separate post on X, cryptocurrency analyst KillaXBT stated that BTC must stay above $115,787 to aim for a target of $125,000 - $127,000 in September. However, this analyst warns that even if Bitcoin starts the month with a new all-time high, it does not guarantee sustainable bullish momentum. At the time of writing, BTC is trading at $114,988, down 2.4% in the past 24 hours.