Bitcoin’s latest price movements indicate a period of stabilization rather than a clear trend in either direction. After briefly reaching a record high of over $123,000 earlier this month, Bitcoin has experienced a slight decline and is currently valued around $118,000.
This marks a 1.1% decrease over the past day and a 3.9% drop from its highest point, as market participants assess if the current conditions hint at a continued rise or a market correction.
Recent insights from CryptoQuant contributors reveal mixed signals. While some metrics show increasing trader optimism, others suggest a more cautious, hold-oriented stance.
Increase in Long Positions Sparks Contrarian Alerts
CryptoQuant contributor BorisVest noted a significant rise in the long/short sentiment ratio on Binance, indicating a trader preference for long positions.
This metric, which measures the volume of long versus short trades on the platform, has turned notably bullish in the $116,000–$120,000 range.
During Bitcoin’s previous stabilization between $100,000 and $110,000, sentiment favored short positions, which preceded an upward breakout and a wave of short liquidations. This time, however, the dynamics have shifted. BorisVest commented:
“With sentiment now heavily skewed towards longs, the same principle could apply in reverse. When the majority bets in one direction, it often sets up the opposite move. The current range is acting as a trap zone, repeatedly testing traders’ expectations.”
The historical pattern of extreme sentiment preceding opposite price movements has led some experts to advise caution, warning that the growing bullish sentiment might trigger a temporary downturn if liquidity pressure increases.
Bitcoin Exchange Flow Trends Indicate Investor Confidence
While Binance sentiment data leans towards optimism, another significant on-chain indicator presents a different scenario. CryptoQuant analyst Arab Chain analyzed the Bitcoin Flow Pulse (IFP) indicator, which tracks BTC transfers to centralized exchanges.
The data shows that despite Bitcoin’s recent peak above $120,000, there hasn’t been a corresponding surge in exchange inflows, suggesting investors are not in a hurry to cash out or leave the market.
This behavior contrasts with previous cycles in 2017 and 2021, where price peaks were accompanied by significant exchange inflows and subsequent corrections. Arab Chain noted:
“The market currently exhibits a consolidating trend with reduced selling pressure. The low flow to exchanges indicates confidence among holders, suggesting many expect the uptrend to persist.”
Nonetheless, he warned that a change in the IFP indicator, such as a sudden increase in exchange flows, could signal an early warning of heightened supply pressure.
