Bitcoin’s recent rally pushed the cryptocurrency to retest the $122,000 level before facing a pullback. At the time of writing, BTC is trading at approximately $119,053, marking a short-term correction after reclaiming significant highs earlier in the week.
The move comes as traders and analysts watch closely for signs of market strength or weakness at current price levels. One metric drawing attention is Binance’s share of global trading volume.
BorisVest’s review found that during the first ATH in 2024, global market volumes were elevated, and Binance’s trading activity was more than double that of all other exchanges combined.
The analyst noted that historically, ATHs supported by broad volume growth tend to indicate stronger market conviction. A lack of participation from other exchanges could signal potential challenges in sustaining higher prices over the coming months.
Avocado onchain highlighted that in recent cycles, Binary CDD rises have been followed by either prolonged sideways trading or moderate corrections.
The current data supports what the analyst describes as a “stair-step” rally, where the market advances gradually while cooling short-term speculative activity. This pattern, if sustained, could prevent rapid depletion of buying momentum and allow for more stable long-term growth.
This aligns with the view that while near-term movements may be range-bound, the broader trend still holds the potential for future upside, contingent on broader participation and sustained investor demand.
Featured image created with DALL-E, Chart from TradingView
