Brothers, this Bitcoin wave is truly a roller coaster!

On August 14, Bitcoin (the nickname for Bitcoin) shot up to a historical high of $124,000! The crowd screamed, and the crypto world exploded with calls of 'the bull market is back.' Unfortunately, the good times didn't last long, like suddenly getting blocked by the goddess you chased; the next day, Bitcoin turned around and fell back to around $118,000.

By the weekend of August 16, everyone was hoping it could reignite some passion, but it was just lingering around $118,000 like an old man, moving neither up nor down, just sideways for a day. The market atmosphere cooled significantly, and many were asking: 'Bitcoin, are you tired? Or are you holding back a big move?'

But don't worry, let's take a look at the on-chain data; the answer is hidden inside.

🔍 On-chain signals: Bitcoin flow on Binance

According to CryptoQuant data, analyst BorisVest gave a not-so-pleasant reminder: In the next one or two weeks, Bitcoin may still face considerable selling pressure.

The reason is simple - the net flow of Bitcoin on Binance has turned positive. What does that mean? It means Bitcoin is not flowing out (withdrawing to wallets), but flowing into the exchange. Experienced players in the crypto world know that when coins flow into an exchange, it’s mostly for selling! Even more painful is that the outflow is still decreasing. This tells us that people are not hoarding coins now, but are looking to sell at higher points.

In other words, Bitcoin is currently in what is known as the 'distribution phase'. Sounds a bit professional? Simply put, the market makers and whales are gradually passing their chips to the new retail investors in the market.

🐳 Whales are selling, buyers are picking up

BorisVest further analyzes that the gap between perpetual contracts and spot prices reveals that there are still quite a few buyers actively taking over in the market. In other words, the demand is not absent, but it has become the best opportunity for whales to unload their positions.

Imagine a group of whales (big fund players) throwing Bitcoin into the market, resulting in a bunch of new retail investors' eyes lighting up: 'Wow! Bitcoin is on sale, let’s go!' So they rush in, only to catch the whales' bullets.

That's why, after Bitcoin dropped from its historical high, it didn't just free fall; it dropped a bit, rebounded, then dropped again - because buyers were still holding the line, but selling pressure didn't stop.

⚡ Why Binance?

You have to know that Binance is the largest cryptocurrency exchange in the world by trading volume, basically equivalent to the main battlefield of the crypto world. Most of the actions by whales also take place here.

BorisVest pointed out that when Bitcoin surged to a new high, the reserves on Binance were still rapidly increasing. This means that more and more people are transferring their coins to Binance in preparation for selling. Although market buying is still present, as prices peak, demand gradually weakens, and once buying pressure weakens, selling pressure can be magnified instantly.

In simple terms: Binance whales are singing hard on stage while a crowd of spectators below are scrambling for tickets, and the ones who get stuck can be imagined.

🧨 Upcoming risks

Therefore, combining these on-chain signals, the conclusion is very clear: the overall trend of Bitcoin is indeed still on a bull market track, but in the short term (the next 1 to 2 weeks), the selling pressure will still be a bit overwhelming.

Bitcoin's current state is like someone who just finished a marathon; clearly capable of running, but right now needs to catch their breath. However, while it takes a break, retail investors need to keep their hearts bigger - because it could suddenly hit the brakes or take a small dip at any moment.

🤔 Reminder for beginners

So what should beginners do? It's actually quite simple:

Don't chase the highs - it has just broken through a new high, and is now in a phase where large funds are 'distributing chips'; rushing in could likely lead to being set up by the whales.

Focus on key price levels - if it can't hold around $118,000, it may continue to probe downwards in the short term.

Think long-term - the overall bull market hasn't changed; it's just short-term volatility. If you are a long-term investor, these fluctuations are just seasoning, so don’t panic.

Don't get carried away - no matter how exciting the bull market is, you still need to keep some bullets ready.

📌 Let's summarize

Bitcoin's recent surge and drop was actually a 'typical small episode in a bull market.' On-chain data shows: whales are unloading, Binance reserves are increasing, and while buying is still present, it's not strong enough, leading to market fluctuations and even slight corrections.

From a big picture perspective, the bull market isn’t over; from a short-term perspective, Bitcoin may continue to face pressure in the next one or two weeks. For beginners, don’t be impulsive in this stage; learn to patiently wait for opportunities, so you won't be harvested by whales and start doubting life.

In summary: The bull market is still on, but Bitcoin needs to take a breather in the short term; retail investors should stay calm and not panic!