Bitcoin dropped to $114,386 this morning, causing nearly $300 million in liquidations over the past 24 hours due to investors' confidence in the asset remaining shaky. However, the increase in spot trading volume brings a glimmer of hope that BTC may be starting an accumulation phase.

Is Bitcoin in an Accumulation Phase?

According to a Quicktake article by CryptoQuant author Amr Taha, the spot trading volume of BTC on Binance exceeded $6 billion on August 18 - one of the most significant spikes this month.

Taha notes that such rallies often signal increasing participation from institutional investors and large traders, alongside some retail activity looking to capitalize on the upward volatility.

Notably, the sudden spike in trading volume on Binance coincided with the moment when BTC's price dropped below $115,000 - a development that could be a predictive signal of a potential reversal.

Historical data shows that strong buying during price dips often reflects traders accumulating BTC at discounted levels. This can reduce selling pressure and prepare for a recovery process if demand continues.

Taha also emphasizes that the increase in trading volume on Binance occurs alongside a decrease in the flow of funds from Binance Whale to the exchange, dropping from $6.4 billion to $5 billion - a $1.4 billion decline in BTC transfers from 'whales' to Binance over the past week.

This decline suggests that the number of large investors transferring BTC to exchanges for sale is decreasing, a trend often viewed as positive. Taha concludes:

Combining these factors - a surge in spot trading volume on Binance, strong demand during price dips, and the decrease in 'whales' depositing into exchanges - the market is beginning to show signs of stabilization. If the accumulation process continues at the current level, Bitcoin has a solid opportunity to recover and test 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.

Source: Titan of Crypto on X

Warning for September

While Taha suggests that BTC may currently be in an accumulation phase with a potential reversal in the coming months, other analysts remain cautious. Cryptocurrency analyst Josh Olszewics warns that BTC must survive a '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 for the market-leading cryptocurrency. At the time of writing, BTC is trading at $115,489, down 0.1% in the past 24 hours.

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