Bitcoin (BTC) Market Dynamics Are Showing Bullish Momentum

After experiencing a notable surge in its price above the $105,000 mark, Bitcoin's market dynamics are showing bullish momentum for continued growth.

After experiencing a notable surge in its price above the $105,000 mark, Bitcoin’s market dynamics are showing bullish momentum for continued growth.

This new strength in BTC is also observed among key metrics such as the Spot Net Volume Delta, which has recently flipped into positive territory.

Binance Bitcoin Spot Volume Shows Strength

In a CryptoQuant quicktake post, Darkfost, an on-chain expert, mentioned that the spot net volume delta (USD) on Binance has shifted into positive territory after a stretch of bearish trend, suggesting spot market buying momentum might be resuming.

To put things into perspective, Binance is the leading exchange, with more than 26% of global spot volume, compared to Coinbase’s 16%.

This move into positive territory implies that more investors on the platform are purchasing BTC at the current levels, signaling a resurgence in behavior among institutional and retail players.

With BTC’s price now hovering near key resistance levels, the development could support the ongoing uptrend, ultimately triggering a sustained rally.

While the shift indicates increased buying activity in the spot market, the expert highlighted that selling pressure has significantly decreased even as BTC’s price trades above the $100,000 mark. According to Darkfost, this is a more important factor to consider during this rising spot volume.

However, the expert has underlined the need to be cautious in times like these, as a quick and sharp rise in Bitcoin’s spot net volume delta on the Binance crypto exchange has often coincided with local market tops.

Considering the alignment with the market top, this indicates that the ongoing upward trend might run all the way to this cycle’s market top.

Following a deep analysis of the trend, Darkfost has underscored two major factors that have typically driven the surge in spot volume. The first factor is a wave of euphoria encouraging investors to minimize risk and seek out additional profits.

Meanwhile, the second factor is an acceleration of profit-taking, particularly once new all-time highs are broken.

As seen in the past, this combination of euphoria and accelerated profit-taking has resulted in large volume spikes.

However, Darkfost stated that monitoring selling pressure during these volume spikes is crucial in such high-risk conditions. In the meantime, the current rise in spot volume would be supportive of market strength rather than being a warning signal.

BTC To Peak At $207,701

Addressing BTC’s top for this cycle, Mags, a crypto analyst, has predicted that the asset could peak at $207,701 based on past trends in tandem with Fibonacci extension levels. In the previous cycle, Bitcoin reached its top precisely at the 3.618 fib extension level.

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Meanwhile, BTC remains below the 1.618 fib extension level in the ongoing cycle. The chart shows that the next major resistance is the 2.618 fib extension level at $154,522, which Mags considers the most bearish scenario for a cycle top.

Should BTC repeat past trends, it could peak at the 3.618 fib around $207,701 and beyond in the most bullish scenario.