Bitcoin dropped to $114,386 earlier today, triggering nearly $300 million in liquidations over the past 24 hours due to investor confidence in the asset remaining shaky. However, the increase in spot trading volume brings a glimmer of hope that BTC may now be entering an accumulation phase.
Is Bitcoin in an Accumulation Phase?
According to a CryptoQuant Quicktake post by contributor Amr Taha, Binance's spot trading volume for BTC exceeded $6 billion on August 18 – one of the most significant spikes this month.
Taha notes that such spikes often signal increasing participation from institutional investors and large traders, along with some retail activity looking to capitalize on the rising volatility.
Notably, the sudden spike in trading volume on Binance coincides with the time when BTC price fell below $115,000 – a development that could serve as a leading indicator of a potential price reversal.
Historical data shows that strong buying during price declines often reflects traders engaging in accumulating BTC at discounted prices. This move could reduce selling pressure and lay the groundwork for a recovery if demand continues.
Taha also emphasizes that the increase in trading volume at Binance occurred alongside a decrease in cash flow from Binance Whale to the exchange, dropping from $6.4 billion to $5 billion - a reduction of $1.4 billion in whale transfer transactions to Binance over the past week.
This decline suggests that the number of large investors sending BTC to exchanges for sale is decreasing, a trend often considered bullish. Taha concludes:
Combining these factors – a surge in spot trading volume on Binance, high demand during price declines, and a decrease in whale deposits – the market is showing initial signs of stabilization. If accumulation continues at the current level, Bitcoin has a solid chance to recover and retest higher resistance levels in the near future.
Technically, cryptocurrency analyst Titan of Crypto notes that BTC is still following the weekly trend line. If this trend continues, BTC could reach a target of $130,000 in the coming weeks.
Warning Signs for September
While Taha suggests that BTC may currently be in an accumulation phase with a possibility of trend reversal in the coming months, other analysts remain cautious. Cryptocurrency analyst Josh Olszewics warns that BTC must survive the "harsh September" before any significant recovery can occur in Q4 2025.
Similarly, BorisVest, a contributor to CryptoQuant, warns that the next 1-2 weeks could bring increased selling pressure on the leading cryptocurrency by market capitalization. At the time of writing, BTC is trading at $115,489, down 0.1% in the past 24 hours.
