Bitcoin (BTC) Price Trades Above All-Time Highs as Spot Market Volume Plummets

Bitcoin is trading above all-time highs once again, having surged past the $110,000 mark just hours ago. The breakout signals strong bullish momentum as BTC

Bitcoin (BTC) price is trading above all-time highs once again, having surged past the $110,000 mark just hours ago. The breakout signals strong bullish momentum as BTC enters a fresh price discovery phase. Investor sentiment remains upbeat, with many analysts speculating on how far this rally could extend. While some foresee an extended bull run fueled by macro trends and institutional flows, others caution that overheated levels could trigger sharp pullbacks.

One critical piece of data comes from CryptoQuant: since the collapse of Luna in 2022, average weekly trading volumes for the BTC/USD pair on centralized exchanges (CEXs) have sharply declined. From a peak of 2.9 million BTC traded weekly in July 2022, volumes have fallen to just 426,000 BTC as of yesterday’s session.

This drop in exchange activity suggests two key dynamics. First, a reduced supply of BTC on exchanges is often linked to long-term holding behavior, typically viewed as a bullish signal. Second, lower sell-side liquidity may contribute to increased volatility, especially in the face of rapid price movements.

As Bitcoin continues its upward march, the absence of significant volume on CEXs could either accelerate gains or magnify corrections depending on investor reaction in the days ahead.

Bitcoin Low Exchange Volume Adds Fuel To Bullish Outlook

Bitcoin is showing resilience in the face of macroeconomic headwinds. While U.S. equities dipped yesterday due to rising yields in Treasury Bonds, Bitcoin climbed steadily, signaling that market participants may be rotating capital into hard assets amid uncertainty. This relative strength highlights BTC’s appeal as a hedge, particularly when traditional markets waver.

However, despite the bullish momentum, a key hurdle remains at the $115,000 level. Breaking above this resistance would confirm the next phase of the rally and open the door to higher price discovery. Conversely, a failure to hold above current levels around $110,000 could invite a swift correction back to previous support zones. Traders are watching closely, as volatility could rise quickly.

Top analyst Axel Adler provides further context to the broader trend. According to Adler, after the Luna collapse in 2022, weekly trading volumes for the BTC/USD pair on centralized exchanges (CEXs) have plummeted—diminishing from 2.9 million BTC in July 2022 to a mere 426,000 BTC this week.

This sustained long-term decline in exchange activity is seen as a bullish structural shift. It signals a move toward long-term holding behavior and a tightening of the BTC supply that is available for trading. With fewer coins circulating on exchanges, sell-side pressure lessens, creating a more supportive backdrop for the continuation of the current upward price trend.

BTC Price Action Shows Strong Momentum

Bitcoin is currently trading at $110,855 after briefly touching $111,163, showcasing strong upward momentum and the continuation of the bullish trend. On the 4-hour chart, BTC has consistently posted higher lows and higher highs since bouncing off the $100K support level on May 15. The recent breakout above the $108K resistance level triggered a surge in buying volume, propelling BTC into uncharted territory.

Key technical indicators support the bullish bias. The 200-period simple moving average (SMA) at $98,024 and the 200-period exponential moving average (EMA) at $98,826 are trending upward, which confirms strong underlying trend support. Volume spikes in the last two sessions suggest strong conviction from buyers.

However, the price is beginning to show signs of potential exhaustion. The latest candles exhibit long wicks on the upper side, which could indicate selling pressure. If BTC fails to maintain momentum, we could see a retest of the $108K breakout level. Immediate support lies around $103,600, with $100K serving as the psychological floor.