Bitcoin Drops 0.5% Amid Rising Spot Demand on Binance

Bitcoin has recently experienced a slight decline in its trading session, reaching a 24-hour high of $106,518 before retracing to $104,820, marking a 0.5% decrease over the past day. Despite this minor pullback, the cryptocurrency remains close to its all-time high of $109,000, set in January, keeping traders and analysts attentive to its next movements.

One notable development in the current market behavior is the return of positive spot net volume delta on Binance. This metric, which measures the net difference between buying and selling volume on spot markets, indicates that spot demand for Bitcoin is increasing. While rising spot volume can signal growing interest, sharp spikes, especially during euphoric rallies or profit-taking phases, can sometimes coincide with local tops. Previous surges in Binance spot volume were often linked to key market tops, driven by rapid sentiment shifts. Such volume expansions tend to result from two primary drivers: enthusiasm that leads traders to chase price action, and experienced investors taking profits after breaching key resistance zones.

In the current cycle, however, the uptick in volume appears more gradual, which analysts view as a healthier sign for market continuation rather than a sign of overheating. Binance’s position as the top global crypto exchange gives these trends additional weight. Monitoring activity on such a dominant exchange provides useful insights into broader market sentiment, especially in periods where Bitcoin approaches key psychological levels like $100,000 or higher.

In a separate analysis, another CryptoQuant analyst examined the market through the lens of MVRV (Market Value to Realized Value) momentum across both short- and long-term holders. The analysis found that while both groups are sitting on significant unrealized profits, short-term holders have seen their weekly MVRV momentum decline. This means that those who entered the market recently may not be achieving expected returns, which could increase the likelihood of short-term sell pressure. The divergence in MVRV momentum between long-term and short-term holders is often seen as an early signal of a shift in market dynamics. If long-term holders begin to distribute profits while newer market entrants grow frustrated, short bursts of volatility could emerge.

However, broader positive momentum and the resilience of spot market demand suggest that Bitcoin remains positioned for continued strength, provided these emerging risk signals do not escalate in the near term.