Bitcoin continues to face challenges sustaining its momentum after retreating from its recent all-time high above $124,000. At the time of writing, the asset trades around $111,090, reflecting a 10.5% decline from its peak and a 4.2% drop over the past week.
The pullback highlights growing uncertainty among traders as buying pressure weakens, even while some on-chain indicators suggest potential accumulation.
Crazzyblockk explained that this pattern points to a buildup of liquidity while simultaneously reducing the Bitcoin supply available for sale on Binance. In his words:
Stablecoins in, BTC out. This combination of accumulating ‘dry powder’ and securing assets off-exchange is a classic sign of a market preparing for a bullish move.
Historically, an increase in stablecoin inflows has often preceded heightened trading activity, with many market participants using these reserves to enter positions once favorable conditions emerge.
At the same time, large Bitcoin outflows from exchanges can reflect a broader trend of long-term holding behavior. Investors who transfer coins to private or institutional-grade wallets often intend to store them securely, limiting immediate selling pressure.
Historically, when STH SOPR reaches this level, two scenarios are common. Either the market rebounds quickly, or short-term holders panic, leading to further losses. During this cycle, the second scenario has often played out—though these periods have consistently created opportunities for medium- to long-term investors.
Featured image created with DALL-E, Chart from TradingView
