Bitcoin Uptrend Intact, But Binance Activity Warns Of Short-Term Pullback

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Bitcoin (BTC) reached a new all-time high (ATH) yesterday, climbing to $111,999 on Binance exchange before dipping slightly to around $110,000 at the time of writing. While the broader trend remains bullish, some analysts now anticipate a short-term pullback. Bitcoin Remains Bullish But Some Pullback Expected

According to a recent CryptoQuant Quicktake post by contributor BorisVest, early warning signs suggest that BTC may face a brief correction. The analyst noted that if momentum doesn’t pick up soon, Bitcoin could struggle to maintain its bullish trajectory. Related Reading Bitcoin Heating Up? NVT Golden Cross Hints At Potential Local Top 3 days ago

Binance taker buy/sell volume has shown a noticeable spike in aggressive buy orders – usually a bullish signal – but sell volume has also risenin tandem, effectively absorbing most of the demand. Despite this uptick in buy volume, BTC’s price has not responded proportionally, suggesting distribution or selling pressure. Bitcoin taker buy volume has spiked in recent days | Source: CryptoQuant

For the uninitiated, Binance taker buy/sell volume measures the amount of aggressive buying versus selling on the exchange using market orders. A higher taker buy volume indicates strong buyer interest, while higher taker sell volume signals stronger selling pressure.

In addition, Binance open interest has surged during the recent price rally, signalling an influx of leveraged positions. While rising open interest can support further gains, the subdued price reaction raises concerns about Bitcoin’s short-term strength.

Meanwhile, funding rates have stayed mostly neutral throughout the rally. However, the most recent push to a new ATH saw BTC’s funding rates turn slightly positive, hinting at increasing long exposure and renewed bullish sentiment.

The breakout also triggered significant short liquidations, likely fuelling a short squeeze. Data from Coinglass shows that over the past 24 hours, $521 million in positions were liquidated – $448 million of which were shorts. Market Needs A Breather Before Climbing Higher

Concluding, the CryptoQuant contributor noted that despite the emerging signs of caution, Bitcoin’s overall bullish structure remains intact. However, the market is now seeing the early signs of a potential short-term pullback, especially due to the spike-driven nature of the move.  Related Reading Bitcoin Realized Dominance Signals Weak Hands Capitulating, Strong Hands Rising 1 week ago

Other analysts share a similar outlook for BTC. For example, crypto analyst Christian Chifoi suggestedthat the current price action may be a deceptive move designed to trap bullish traders – potentially pushing BTC down to $97,000 before the final rally begins.

That said, the recent weaknessobserved in the US Dollar Index (DXY) has fuelled hopes for a capital reallocation to alternative assets, including BTC. At press time, BTC trades at $110,885, up 1.1% in the past 24 hours. Bitcoin trades at $110,885 on the daily chart | Source: BTCUSDT on TradingView.com Featured image from Unsplash, charts from CryptoQuant and TradingView.com