Bitcoin’s momentum, which pushed the asset to a fresh all-time high of over $111,000 earlier this week, appears to have paused slightly heading into the weekend. As of the time of writing, BTC is trading at $108,499, marking a 2.5% decline over the past 24 hours.

Despite this short-term retracement, the overall market trend remains positive. Bitcoin has held most of its recent gains and remains just below its record peak set yesterday. The recent price action has coincided with an increase in on-chain signals, suggesting that large players are returning to the market.

Notably, analysts are closely monitoring activity from major crypto exchanges like Binance, which have historically played a significant role in price discovery and market direction.

Bitcoin Whale Activity on Binance Sparks Volatility Watch

A recent analysis by CryptoQuant contributor Crazzyblockk highlighted a surge in whale activity on Binance. In his QuickTake post titled “Binance Whale Activity Spikes —  Eyes on the Market,” the analyst pointed out that the Binance Whale Activity Score has seen a sharp rise.

This metric, which measures inflow and outflow behavior of the top 10 whale wallets on Binance, indicates that large holders are actively repositioning. These movements can be early indicators of upcoming volatility and directional shifts in the market.

The analyst explained that inflow spikes from whales may point to potential distribution or strategic selling, while outflow surges often signal accumulation or redeployment of capital to other platforms.

The significance of these whale movements lies in their historical tendency to precede major price developments. According to Crazzyblockk, Binance remains a central venue for price formation, making it critical to observe whale patterns there. He concluded that these inflow-outflow fluctuations could introduce higher liquidity and possibly increased volatility in the short term.

Spot Market Data Points to Renewed Buyer Interest

Complementing these observations is a report from another CryptoQuant analyst, Ibrahimcosar, who identified a positive shift in spot market behavior. According to the analyst, the Spot Taker CVD (Cumulative Volume Delta) over the past 90 days has turned green again.

This metric reflects the difference between taker buy and taker sell volumes and serves as a proxy for real-time demand. A green phase indicates that market buy orders have become dominant, suggesting that buyers are regaining control.

The analyst noted that in previous months, the same chart showed mostly red values, indicating a prevalence of sell orders and downward price pressure. The recent transition back into green territory may suggest the emergence of new demand as Bitcoin challenges its previous highs.

With price levels remaining elevated, the presence of buying pressure is interpreted as a potentially bullish signal. While cautious sentiment remains, these dynamics hint at the possibility of further upward movement if momentum continues to build in the days ahead.

Featured image created with DALL-E, Chart from TradingView

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Filed under: Bitcoin - @ May 27, 2025 4:00 am