Bitcoin Faces 12% Selling Pressure on Binance as Institutional Profit-Taking Intensifies

Analysts have cautioned crypto traders to prepare for heightened market volatility, as Bitcoin, the dominant cryptocurrency, has been trading around $106,000, showing signs of consolidation amidst mixed market signals. Retail investors are actively accumulating Bitcoin, while institutional players are taking profits, indicating potential market volatility. Binance's trading patterns suggest a preference for selling over buying, which could lead to further downside risk for Bitcoin.

The current consolidation of Bitcoin results from conflicting signals from various market participants. While retail investors continue to accumulate aggressively, institutional players and long-term holders are displaying profit-taking activity, which typically precedes significant market swings. According to CryptoQuant data, the Net Position Realized Cap for long-term holders dropped from $28 billion to just $2 billion by the end of May 2025, indicating a notable loss of institutional confidence despite Bitcoin’s strong price performance.

Binance has seen net stablecoin outflows of over $1 billion, suggesting that traders are moving money off exchanges into private wallets. This pattern usually indicates lower near-term buying intention and reduced risk appetite. Large holders managing between 1,000 to 10,000 BTC have been progressively offloading positions, generating selling pressure that retail accumulation may struggle to offset.

Binance’s Taker Buy/Sell ratio has dropped below 1.0, indicating that selling preferences over buying on the world's largest cryptocurrency exchange. Given that Binance accounts for around 60% of global Bitcoin spot trading volume, this negative sentiment carries significant weight for the overall market direction. Historically, Bitcoin has undergone price corrections of 5–10% within weeks when Binance’s trading activity diverges from that of other exchanges. The current ratio, hovering around 0.98, shows a 12% decline over the past week and a 25% reduction over the past month, suggesting increasing selling pressure.

Technically, Bitcoin is testing the crucial $106,000 resistance level, with the 20-day EMA at $105,232 acting as immediate support. A failure to exceed $106,000 could trigger a retest of the psychologically significant $100,000 level, where buyers are expected to mount a robust defense. The negative scenario forecasts possible support at $103,000, with a breach below opening the door for $93,000. Conversely, a successful break above $106,000 could drive Bitcoin toward the $109,508-$111,980 resistance zone, with more upside aiming at $130,000.

Despite the alarming on-chain data, some analysts remain cautiously optimistic about Bitcoin’s medium-term trajectory. The Net Realized Profit/Loss (NRPL) statistic indicates that current profit-taking levels are moderate relative to previous cycle tops, suggesting the bull market may still have room to run. Rising BTC outflows from centralized exchanges, notably a recent 7,883 BTC withdrawal from Coinbase, point to ongoing institutional accumulation behind the scenes. This implies that even with the current consolidation, smart money could be positioning for another upward movement.

Based on current market dynamics, Bitcoin is likely to trade between $100,000 and $110,000 in the near future. The cryptocurrency is at a turning point where institutional selling pressure meets retail buying enthusiasm, creating a delicate balance that could tip either way. External events, such as geopolitical developments, regulatory clarity, or changes in monetary policy, will likely be the main drivers of Bitcoin’s next significant move. Traders should expect increased volatility until then as the market absorbs conflicting signals from various participant cohorts.