Bitcoin (BTC) has remained in a narrow range between $100,000 and $110,000 since May 7, except for a few drops to as low as $98,000 in June, which were promptly followed by daily candlestick closures above the $100,000 threshold. Recent evaluations indicate that BTC has endured prolonged selling pressure on Binance Derivatives throughout this timeframe.
Bitcoin Resists Binance Derivatives Sell-Off
As per a CryptoQuant Quicktake article by contributor BorisVest, taker participants on Binance Derivatives have persistently partaken in sell-side actions for at least the last 45 days. Notably, the Cumulative Volume Delta (CVD) has stayed negative during this interval.
For those unfamiliar, the CVD gauges the net distinction between market buy – aggressive acquisition – and market sell – aggressive liquidation – orders over time. It assists traders in discerning whether buying or selling pressure prevails, even if the price remains stable.
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BorisVest pointed out that Binance Derivatives traders are viewing each BTC rebound or surge as a selling chance, opening aggressive short positions through market sell orders. Nevertheless, this significant sell pressure has not managed to drive prices lower, as BTC continues to absorb the selling pressure and uphold support above $100,000.
The analyst elaborated that as long as BTC stays within its current range – between $100,000 and $110,000 – while absorbing selling pressure, the potential for upside remains viable. He clarified:
The CVD metric is pivotal here. It consolidates both taker and maker activity to provide a real-time overview of net buy/sell pressure. The persistent decline in the CVD affirms the predominance of sell-side flow. Yet, the price’s inability to drop further in spite of this pressure may indicate that Bitcoin is being absorbed by institutional or large stakeholders behind the scenes.
However, other analysts interpret the ongoing selling pressure in a different light. For example, fellow CryptoQuant analyst Crazzyblockk recently noted that new buyer interest is having difficulty matching the combined selling pressure from newly mined BTC and offloading by long-term holders.
BTC Anticipating A Breakout Ahead?
Bitcoin’s steadfastness amidst significant selling on Binance Derivatives has once again ignited speculation regarding a potential breakout. Numerous additional data indicators imply that BTC might soon be ready to transition into a higher price bracket.
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For example, recent on-chain data indicates that “weak hands” are selling their BTC holdings to larger, more seasoned investors – signaling a broader change in sentiment favoring Bitcoin. Concurrently, institutional interest in the asset continues to rise.
Moreover, the Bitcoin Yearly Percentage Trend suggests that BTC could peak at around $205,000 by the conclusion of 2025. At present, BTC is trading at $108,589, an increase of 0.4% in the last 24 hours.
Featured image from Unsplash, charts from CryptoQuant and TradingView.com