Bitcoin is experiencing a modest surge after enduring days of persistent selling pressure, offering temporary relief to traders. Despite the bounce, price action continues to struggle at higher levels, and momentum remains uncertain. Bulls are attempting to stabilize the market, but conviction is still lacking, leaving investors cautious about whether the rebound can develop into something more sustained.
Related Reading: Bitcoin Wholecoiner Inflows Decline To Lowest Levels Since November 2023 – Details
Adding to the discussion, top analyst Darkfost shared insights pointing to an important shift in trading dynamics. According to him, spot buying is making a notable comeback on Binance, an exchange where derivatives activity has traditionally dominated since the launch of Futures. Historically, the average trading ratio on Binance has leaned heavily toward leveraged products, reflecting the speculative nature of market participation.
However, during specific periods, such as today, spot markets regain strength and capture a larger share of trading flows. Darkfost highlights that this return of spot demand is a key signal, as it often reflects genuine capital entering directly into Bitcoin rather than leveraged positioning. This can serve as a stabilizing factor, consolidating market structure and building stronger foundations for a potential recovery.
Spot Market Dynamics: A Shift Toward Sustainable Growth
Analyst Darkfost explains that the recent uptick in spot buying reflects a meaningful change in investor behavior. Instead of focusing on the fast-paced speculation of derivatives, more traders are allocating capital directly into Bitcoin itself. This shift is significant because spot purchases represent actual ownership of BTC, making them more sustainable than leveraged bets that can unwind quickly.
Darkfost explains that when spot activity increases, it signals fresh capital flowing into the market. These inflows strengthen the underlying market structure, reducing reliance on speculative leverage and laying a sturdier foundation for price stability. Historically, periods where spot flows dominate have often coincided with the early phases of short- or medium-term bullish recoveries. These stages are marked by consolidation, where strong hands accumulate and prepare the market for the next leg upward.
Beyond Bitcoin, the spot trend also extends to altcoins traded on Binance. Current data highlights large spot volumes in tokens such as BNB, which recently reached a new all-time high, Alpine — the Formula 1 team’s fan token — and PUMP, the meme-inspired token from Pumpfun. These flows illustrate that when investors turn to spot markets, liquidity and interest often spill over into highly active altcoins, amplifying broader market momentum.
Bitcoin Faces Resistance After Sharp Rebound
Bitcoin is trading around $113,400 after staging a sharp recovery from lows near $110,000 earlier in the week. The 8-hour chart shows a strong bounce, but momentum has now slowed as the price approaches a cluster of resistance levels. The $117,500 zone, marked in yellow, continues to act as the key ceiling. It has rejected multiple rallies since August and remains the level bulls must reclaim to unlock higher momentum.
Moving averages offer further context. The 50-period (blue) and 100-period (green) moving averages are converging just below the current price, while the 200-period (red) remains overhead near $115,000. Bitcoin’s failure to close above the red line in previous attempts underlines the significance of this barrier. Until the market clears both the 200 MA and the $117,500 horizontal resistance, upward momentum remains fragile.
On the downside, support sits near $110,000, which cushioned the recent decline and provided the base for this rebound. A breakdown below that level would likely intensify selling pressure and expose BTC to deeper losses.
Featured image from Dall-E, chart from TradingView
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
