Bitcoin has seen a modest decline in price after climbing above $94,000 earlier in the week. As of now, BTC is trading at $92,775, reflecting a 1.3% decrease over the past 24 hours.
This price adjustment comes on the heels of a multi-day rally that saw Bitcoin gain nearly 10% since the beginning of the week, prompting investors to question whether the recent momentum is sustainable or merely a temporary uptick amid broader market uncertainty.
While price action has stalled slightly, on-chain data and exchange behavior are beginning to shape a clearer narrative for Bitcoin’s short-term outlook.
Shift in Exchange Flows Signals Accumulation and Reduced Selling Pressure
According to a new analysis from CryptoQuant contributor Novaque Research, investor behavior on Binance, currently one of the largest retail-focused crypto exchanges, may offer valuable insights into what comes next for BTC, particularly regarding liquidity conditions, positioning, and potential short-term price squeezes.
Novaque Research pointed to notable changes in exchange flow patterns that coincide with Bitcoin’s recent price behavior. Between April 6 and April 10, Bitcoin inflows into Binance exceeded 15,000 BTC.
During this period, Bitcoin’s price hovered in the $85,000 to $87,000 range, suggesting increased sell-side pressure, likely driven by short-term traders liquidating positions or preparing for tax-related obligations.
In contrast, between April 19 and April 23, Binance witnessed over 15,000 BTC in outflows as the price surged above $93,000. This shift indicates a trend toward accumulation, with investors opting for self-custody—often perceived as bullish since it implies diminished short-term selling risk.
Supporting this perspective is the Exchange Reserve metric, which has shown a declining trend since April 18. Moreover, the Exchange Whale Ratio fell below 0.3 on April 23, pointing towards reduced influence from large-volume traders and a market increasingly swayed by retail behavior.
Bitcoin Short Squeeze Potential Emerges as Leverage and Whale Activity Decline
Alongside changes in exchange flows, Novaque Research observes a shift in the structure of Bitcoin’s leveraged positions. The analysis indicates that leveraged long positions were largely liquidated in the $82,000 to $88,000 range, demonstrating that many short-term traders exited during the volatility.
Simultaneously, short positions remain concentrated just above the $92,000 mark, making them potentially susceptible to a short squeeze if the market gains further upward momentum.
The report concludes that market conditions are now more balanced, characterized by fewer large players influencing price direction and thinner liquidity zones above current levels. As stated in the analysis:
With the market structure cleaned up and liquidity thin above present levels, any trigger (ETF flows, Fed pivot, EM weakness) may rapidly propel BTC above $98K-$100K.
Featured image created with DALL-E, Chart from TradingView
