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Researcher Amr Taha Reports Panic Selling by Retail Traders on Binance
Amid Bitcoin’s (BTC) drop below $114,000, August 1 saw a sharp decline in net taker volume on Binance to -$1.5 billion — one of the worst readings in recent weeks, signaling overwhelming dominance of market sell orders. Analyst Amr Taha attributes this to a wave of liquidations of late long positions entered during the recent price rebound.
Taker volume refers to the difference between market buy and sell orders. A negative figure means traders are mostly "removing" liquidity with aggressive orders. A drop below -$1 billion reflects panic-driven market sentiment. The hardest hit were traders who opened long positions right before BTC’s plunge — their positions were the primary targets for forced liquidations.
An additional source of pressure comes from negative funding rates. According to data from Binance, BitMEX, and Deribit, BTC funding rates turned negative in late July. This indicates a dominance of short positions, further confirming the rise of bearish sentiment among retail traders. These traders are willing to pay to hold shorts, something that usually occurs near local price bottoms.
According to the analyst, this pattern has appeared before. Retail investors often enter markets at price peaks and capitulate near local bottoms, thereby creating conditions for reversals. The current situation once again resembles a classic "crowd trap," where emotional trading results in significant losses.
“From a behavioral economics standpoint, the current wave of selling on Binance can be interpreted as an opportunity for counter-trend strategies. In times of extreme negativity, savvy investors look for entry points rather than panic with the crowd,” the expert emphasized.
See also: "Traders Expect Solana Price Drop"
