Despite recent volatility, several key indicators are pointing to a bullish undercurrent for Bitcoin (BTC). These include Binance’s rising market dominance, renewed accumulation by long-term holders (LTH), and significant BTC withdrawals from major crypto exchanges.
Bitcoin Showing Signs Of Renewed Strength
At the time of writing, Bitcoin is trading in the mid-$100,000 range – approximately 6.1% below its latest all-time high (ATH) recorded on May 22. The flagship cryptocurrency has declined more than 3.5% over the past seven days amid renewed concerns over global trade tensions and tariffs.
However, according to a recent CryptoQuant Quicktake post by contributor Amr Taha, several bullish signals have emerged since the start of June. Most notably, the LTH Net Position Realized Cap recently crossed the $20 billion threshold, reflecting increased confidence among seasoned investors.
For context, LTHs are entities that have held BTC for over 155 days. Often referred to as “smart money,” these investors typically follow long-term strategies and are less likely to sell during short-term market corrections.
The Realized Cap metric tracks the total value of BTC held by LTHs, based on the price at which coins were last moved. A rising value in this metric implies accumulation by long-term investors – behavior that historically precedes bullish continuation phases.
Meanwhile, major exchanges such as Kraken and Bitfinex have witnessed substantial BTC outflows. Over two consecutive days, more than 20,000 BTC exited these platforms – marking one of the largest short-term withdrawal spikes in recent months.
Such major Bitcoin withdrawals from exchanges are considered bullish because they signal that investors intend to hold their BTC in private wallets rather than sell it, reducing the available supply for trading. This supply contraction can create upward pressure on price, especially when demand remains steady or increases.
At the same time, Binance has strengthened its lead in spot market dominance. Since early June, its share of BTC spot trading volume has increased from 26% to 35%, signalling growing market activity. This uptick aligns with BTC testing key resistance levels. Taha remarked:
The convergence of rising exchange dominance, long-term holder confidence, and supply tightening paints a bullish picture for Bitcoin. While short-term corrections are possible, the underlying demand and reduction in available BTC on exchanges suggest that the uptrend is far from over.
BTC Benefitting From Neutral Funding Rates, Low Selling Pressure
Recent on-chain data shows that the BTC derivatives market has undergone a complete reset, with its funding rates now hovering around zero, not showing any directional bias. Similarly, selling pressure on BTC has remained subdued, evident from low Binance inflows.
That said, some caution is warranted. Fresh on-chain data suggests that cracks may be forming in the sustainability of the current bullish momentum. At press time, BTC trades at $105,022, down 0.3% in the past 24 hours.
Featured image from Unsplash, charts from CryptoQuant and TradingView.com
