BITCOIN TRADING IN SILVIA DESPITE RECORD HIKE, BUYER ABSORPTION SIGNALS COMMITMENT
Following its recent all-time high of $123,100, Bitcoin has entered a sideways consolidation phase, though buyer commitment near the $115,000 level suggests readiness for further upside if liquidity drains, according to indicators such as Binance volume declining.
Analysis points to persistent retail-driven selling, particularly strong on Binance, evidenced by negative Net Taker Volume dipping below $60 million. This indicates market makers primarily transacted with sellers, reflecting sour sentiment even amidst record valuations.
Regional Demand Trends Emerge
Market conditions appear geographically divergent. The US Coinbase Premium Index remains flat, suggesting US buyers are cautious or taking profits despite a BTC rally. Meanwhile, the Korean Premium Index turned negative, meaning Korean exchanges have a discount compared to global counterparts, indicating subdued local demand and potential selling pressure.
Bulls Absorbing Seller Volume
Despite the selling pressure, a $4.1 billion cumulative volume delta (CVD) negative drag was resiliently absorbed and subsequently countered by a $2.3 billion positive spike, showing persistent buying interest at lower price levels. There is confirmed holding above $115,000.
Crypto analyst Boris Vest highlights this $116k/$120k liquidity zone battle as a sign of a robust market, indicating bulls can absorb sell pressure without significant pullback.
The price action suggests a structural defended position around mid-$110k, keeping bulls in control provided rejection below occurs.
Technical Outlook: Fair Value Gaps Matter
Technical analysis indicates the immediate resistance lies near the previous daily high. Penetration below the fair value gap (FVG) area between $115,200 and $112,000 could trigger liquidations and potentially trigger significant upside after “filling” price inefficiencies.
The subsequent target shooting higher would be testing the recent all-time high at $123,100. Accurate technical interpretation requires a sharp bullish bounce from this support zone for continued upside momentum; failure could signal fading bullishness.
“BTC remains in the growth zone, as ‘market participants still support buying activity.’ We haven’t yet entered a phase of excessive optimism ‘there’s still room for further upside toward $139 K without a serious risk of overheating.'” — Bitcoin Researcher Axel Adler Jr.
Analyst perspective supports continued bullish potential, framing the current consolidation as a precursor to potential further gains.
The cumulative effect points towards a market digesting gains and evaluating next potential entry/exit points.
Disclaimer
This article is not investment advice. The reader is urged to exercise their own judgment and conduct personal research.
