Bitcoin's upward momentum has slowed, and market sentiment is reassessing.
Recently, the momentum of Bitcoin's rise has slowed. Despite an increase of nearly 10% over the past week, with the price once surpassing $95,000, it is currently trading at $94,686, up slightly by 0.7% in the last 24 hours. Market participants seem to be reassessing the price direction, leading to signs of a pause in the current price trend.
The dynamics of the spot market and on-chain activities are becoming crucial for determining the continued rise of Bitcoin. In particular, changes related to buying and selling activity on major exchanges may provide important clues about market trends.
Binance spot market change: Buying volume has first exceeded selling volume.
Recently, there has been a significant change in the trading volume increment (CVD) of the Binance spot market, marking the first occurrence in six months where buying volume has exceeded selling volume.
This change indicates that buying interest has relatively strengthened compared to selling interest, with CVD continuing to rise since Bitcoin fell to around $75,000, reflecting a gradual improvement in market sentiment. Given Binance's significant position among global exchanges, the rebound in CVD is seen as a sign of a shift in market sentiment.
Short-Term Holder Realized Price: A key support level for the bull market.
The Short-Term Holder Realized Price (STH-Realized Price) is a key indicator for assessing the sustainability of a Bitcoin bull market. Historically, during bull markets, the price of Bitcoin tends to remain above the STH Realized Price.
Currently, Bitcoin is testing this level, and if it breaks through this key price point, it may signify the continuation of bullish momentum. If the price fails to break through, the market may enter a correction phase.
Conclusion
The price trend of Bitcoin is currently at a critical turning point. Although buying interest in the spot market has increased, a breakthrough in the Short-Term Holder Realized Price remains a necessary condition for further confirming the bull market. Whether the market can break through the current technical bottleneck may determine Bitcoin's subsequent performance.
