Bitcoin’s recent price action reflects a consolidation phase rather than a decisive move in either direction. After briefly touching an all-time
This represents a 1.1% drop in the last 24 hours and a 3.9% decline from its peak, as traders evaluate whether the current market structure suggests a continuation or a correction.
According to new insights from CryptoQuant contributors, indicators present a split narrative. Some metrics suggest rising optimism among traders, while others indicate a more cautious and
CryptoQuant contributor BorisVest
This metric, which tracks the volume of long versus short positions on the exchange, has tilted significantly bullish within the $116,000–$120,000 price range.
He noted that during Bitcoin’s previous consolidation between $100,000 and $110,000, sentiment leaned toward short positions, a setup that
Now that sentiment is skewed heavily toward longs, the same principle could apply in reverse. When the majority positions in one direction, it often creates a setup for the opposite move. The current range is acting as a trap zone, where traders’ expectations are repeatedly tested.
The historical tendency for sentiment extremes to precede contrary price action has prompted some analysts to advise caution, suggesting that
While Binance sentiment data leans bullish, another key on-chain indicator paints a different picture. CryptoQuant analyst Arab Chain
According to the data, despite Bitcoin’s recent high above $120,000, there has not been a corresponding spike in exchange inflows, suggesting that investors are not rushing to take profits or exit the market.
This behavior contrasts with historical cycles in 2017 and 2021, where price peaks were accompanied by large exchange inflows and followed by corrections. Arab Chain wrote:
The market now shows a consolidating trend, with reduced selling pressure. The low flow to exchanges indicates confidence among holders and suggests that many participants are expecting the uptrend to continue.
Still, he cautioned that a
Featured image created with DALL-E, Chart from TradingView