Over the past two weeks, Bitcoin (BTC) has dropped more than 7%, falling from around $117,400 on August 21 to a low of $108,666 earlier today. Despite the bearish slide, some encouraging exchange data suggests improving sentiment. However, analysts warn this could once again be a setup for institutions to trap retail buyers.
According to a CryptoQuant Quicktake post by contributor BorisD, the Binance vs. Other Exchanges BTC Volume Delta turned positive on August 25, registering $676 million. This indicates that Binance users have shifted decisively into spot buying mode.
Notably, this trend has not been observed on other major exchanges. Since Binance is the world’s largest exchange in terms of liquidity and user base, its flows are often considered a reflection of broader market sentiment.
At present, retail investors appear to be fueling buying pressure. While this can support demand for BTC, it also creates an opening for institutional investors to drive prices lower, flushing out retail positions before the market resumes an upward move.
BorisD highlighted that historically, when Binance users increase spot buying, Bitcoin’s price often declines. On the contrary, when selling pressure rises, BTC tends to recover in price. He explained:
This dynamic highlights the clear difference between retail and institutional behavior. Retail traders often act emotionally and position themselves on the wrong side, while institutions strategically engineer liquidity around these flows.
In conclusion, the analyst said that although rising spot buying on Binance is encouraging, a positive delta does not always mean a bullish signal. On the contrary, it can expose retail buying pressure than can be exploited as an opportunity by institutions.
