Bitcoin Approaches Key Resistance as Liquidity Increases

Key Highlights:

Bitcoin’s net taker volume has bounced back from bearish levels to neutral.
On-chain analyses reveal controlled profit-taking, not panic selling.
Data from Binance indicates the strongest buying momentum for Bitcoin since July.

Bitcoin (BTC) has stabilized above $120,000 after a significant drop from its peak, with renewed buying activity observed. Both the spot and derivatives markets are balancing out, potentially paving the way for a further price increase.

Bitcoin four-hour chart. Source: Cointelegraph/TradingView

As detailed by CryptoQuant, the medium-term derivatives market trend has seen a significant recovery. The net taker volume comparing buy and sell orders has shifted from an extreme bearish position of -$400 million up to neutral.

Bitcoin Net Taker Volumes. Source: CryptoQuant

Previously, a similar scenario was observed during Bitcoin’s April downturn when it recovered to a 51% increase over 13 weeks. Analysts are cautious, noting that a sudden surge could suggest an overheated market if buying escalates too quickly.

CEO Joao Wedson from Alphractal remarked that

“Metrics like this can take you to a whole new level, significantly increasing your decision-making accuracy.”

This quote emphasizes the importance of disciplined buying during market lows.

Buy/Sell pressure delta for Bitcoin. Source: Joao Wedson/X

Meanwhile, Swissblock analytics noted that while short-term profit-taking is common after hitting record highs, the activity has been measured and not frantic. Holding just above $120,000 is seen as a signal of a positive cooling phase preparing for the next upward demand.

Notable Buying Surge Validates True Liquidity

Data from Binance has supported the ongoing strong buying activity. Since early October, Bitcoin’s price surged from about $117,000 to $124,000, with notable buy pressure exceeding $500 million on various occasions.

Binance Bitcoin buy-side pressure. Source: CryptoQuant

These data points suggest an increasing institutional and whale involvement in the market. Daily trading volumes are at their highest since July, indicating that Bitcoin’s growth is driven by genuine liquidity rather than transient speculation.

While some recent sessions reported slight declines in volume, persistent volatility and collective buying by mid-sized holders reinforce a strong market outlook. Unlike the volatility seen in September, a downturn toward the $120,000 mark could be perceived as an optimal accumulation opportunity instead of a long-term market reversal.

This article is for informational purposes only and should not be interpreted as investment advice. Every investment carries risks, and individuals should conduct their own research before making decisions.