Bitcoin Investors Enter HODL Pattern: CEX Spot Volume Falls to 2020 Low
As price action tightens, Bitcoin is preparing for the decisive move. The Bulls are working to increase BTC and confirm the continuation of the bullish phase, but the market remains cautious. Although the technological structure is still conducive to the upward space, the increasing macroeconomic uncertainty has caused a shadow of emotions. Inflation pressures, geopolitical tensions and tightening of global liquidity continue to shake investor confidence on risky assets, and Crypto is no exception.
In addition to the mixed outlook, new data from Encrypto Rich suggests that the average spot trading volume on centralized exchanges has dropped to its lowest level since October 2020. This shows that participants are sitting on the sidelines and coins are not actively sold or moved on the chain.
For now, Bitcoin holds higher than critical support and shows signs of strength. However, if there is no surge in quantity or clear catalysts, the next step may be silent or explosive. The days ahead may prove to be critical when determining whether BTC explodes or stalls again.
Market brackets for Bitcoin as a decisive move are nowhere to go
Now that Bitcoin is only 6% away from its all-time high of $112,000, everyone’s eyes are focused on whether the Bulls can cross the ultimate obstacle. After rising more than 50% from April lows, BTC enters a merger phase below resistance – this setting is usually before a breakout or reversal. The upcoming moves may set the tone for the rest of the market, with momentum expanding sharply or fading into deeper consolidation.
Although technology remains strong, macroeconomic headwinds continue to burden emotionally. Rising tensions between the United States and China, along with the continued high bond yields, introduce systemic risks that could spill over the crypto market. Investors are cautious, and many wait for clarity before taking on new positions.
Top analyst Axel Adler shares key insights from encrypted data: The average spot trading volume on centralized exchanges has dropped to its lowest level since October 2020. According to Adler, this shows that market participants have no sales force and are not actively buying. The coins are held tightly, with minimal movement on-chain or spot markets.
This “HODL model” points to the growing long-term belief among investors, but also reflects uncertainty. The lack of spot activity makes it harder to break the price decisively without new capital entering the market. Still, if Bitcoin can put $112K support into support, it could trigger a surge in momentum-driven purchases.
BTC approaches key resistance
Bitcoin traded at $107,200 after earning 1.33% on the day, continuing the rebound from the $103,600 support level. The daily chart shows that BTC climbed steadily, recovering 34-day EMA at $103,683 and well above the 50-day and 100-day SMA, currently at $101,906 and $93,053, respectively. This clean recycling of key moving averages is a bullish technical signal that momentum is gradually shifting rather than bulls.
Now, the price is approaching the $109,300 resistance level, which is the ultimate obstacle to retesting $112,000. The area has been a ceiling since late May and is now a key level to watch. Closed closing prices above $109,300 per day could trigger a breakout and send BTC into the price discovery space.
The volume is still relatively low compared to earlier trends, suggesting that the move is driven by steady demand rather than aggressive buying. However, since the rebound in early June, the structure has remained constructive and formed a high trough.
As long as Bitcoin sells for over $103,600 and continues to push towards resistance, the broader trend remains intact. However, a $109,300 rejection could cause BTC to resume merge. The next few meetings will be crucial.
Featured images from DALL-E, charts from TradingView
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