Bitcoin (BTC) fell below the $108,000 mark on Monday, signaling a potential loss of short-term momentum as exchange reserves on Binance rise and institutional appetite shows signs of slowing.
Bitcoin Pulls Back Amid Higher Trading Volumes
At press time, Bitcoin was trading at $107,607, down 2.7% over the past 24 hours. The leading cryptocurrency has moved between $106,786 and $115,957 during the past week, marking a 6.4% weekly decline and a 12% drop over the past month.
Bitcoin now sits roughly 14% below its all-time high of $126,080 reached on October 8.
Despite the price retreat, trading activity has actually increased.
According to CoinGlass, Bitcoin’s 24-hour spot trading volume jumped 62.6% to $44.3 billion, showing renewed short-term participation.
Derivatives volume also rose 44.46% to $73.07 billion, while open interest edged down 1.22% to $69.80 billion—a signal that traders are entering and exiting positions more quickly, reflecting uncertainty and short-term caution.
Binance Data Suggests Fading Momentum
Data from CryptoQuant indicates that buying pressure from large traders may be weakening.
Contributor Arab Chain noted in a November 2 analysis that Binance’s cumulative volume delta (CVD)—a metric tracking net buying pressure fell to 0.777 at the start of November, down from 0.91 in October.
The decline suggests that institutional and whale demand has cooled, even though prices have remained relatively stable.
“The loss of synchronization between buying flows and price action may indicate that current price support is based more on sentiment and positioning than fresh liquidity,” Arab Chain explained.
“If the CVD drops below 0.70, Bitcoin could face a short-term correction or stagnation.”
Exchange Reserves Climb, Hinting at Selling Pressure
In a separate update, CryptoQuant analyst Coindream highlighted that Binance’s Bitcoin reserves are increasing—a trend that has often preceded selling pressure in past cycles.
When reserves rise, it typically means more BTC is being sent to exchanges, possibly to be sold. Combined with weaker market buy volume and stronger net deposits, analysts believe the setup points toward a short-term bearish bias.
Technical Outlook: Support at $106K, Resistance Near $111K
From a technical perspective, Bitcoin currently trades just above its lower Bollinger Band near $107,500, while struggling to reclaim the mid-band around $109,700.
The upper band at $111,800 represents the next resistance level.
Momentum indicators show signs of weakness:
- The MACD and momentum oscillators remain negative.
- The Relative Strength Index (RSI) stands at 41, reflecting mild bearish sentiment.
- The 200-day EMA, now at $108,400, acts as immediate resistance.
If Bitcoin fails to hold $106,700, analysts warn that it could fall toward $102,000, or even $100,000, in a deeper correction.
On the upside, a rebound above $111,000 with rising spot volume could signal a short-term bullish reversal and renewed institutional participation.
The Bottom Line
Bitcoin’s latest pullback underscores a cooling in short-term momentum, even as trading activity remains high. Rising Binance reserves and fading institutional demand suggest that recent rallies may be losing steam.
For now, Bitcoin remains in a cautiously bearish phase, with traders closely watching the $106,000–$111,000 range for the next decisive move.
