rewrite this title Bitcoin Pulls Back From $122K, Is the Rally Losing Steam or Just Pausing?

Bitcoin’s recent rally pushed the cryptocurrency to retest the $122,000 level before facing a pullback. At the time of writing, BTC is trading at approximately $119,053, marking a short-term correction after reclaiming significant highs earlier in the week.

The move comes as traders and analysts watch closely for signs of market strength or weakness at current price levels. One metric drawing attention is Binance’s share of global trading volume.

According to CryptoQuant analyst BorisVest, the exchange’s dominance in trading activity provides valuable context for interpreting Bitcoin’s performance at all-time highs (ATHs).

By comparing volume distribution across exchanges during previous ATH periods, the analysis seeks to determine whether the broader market is participating in the rally or if activity is concentrated on a single platform.

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Bitcoin Exchange Volume Concentration and Market Signals

BorisVest’s review found that during the first ATH in 2024, global market volumes were elevated, and Binance’s trading activity was more than double that of all other exchanges combined.

When Bitcoin retested its ATH later that year, overall market volumes increased across multiple platforms, yet Binance maintained its lead in total trading share.

In contrast, when Bitcoin set a new record in mid-2025, total market volume did not show a significant increase compared to previous rallies. While Binance still recorded nearly twice the trading volume of other exchanges combined, the absence of a wider market volume expansion raised concerns.

The analyst noted that historically, ATHs supported by broad volume growth tend to indicate stronger market conviction. A lack of participation from other exchanges could signal potential challenges in sustaining higher prices over the coming months.

On-Chain Patterns Suggest Gradual Market Progress

In a separate assessment, CryptoQuant analyst Avocado onchain examined Binary Coin Days Destroyed (CDD), a metric tracking the movement of long-dormant coins. The indicator recently turned lower after a brief rise, with Bitcoin’s price trading within a sideways range.

Historically, increases in Binary CDD have been linked to selling pressure from long-term holders, often leading to corrections. However, current market conditions, shaped by changes in custody solutions, over-the-counter trading activity, and institutional investment strategies, make interpreting CDD spikes more complex.

Avocado onchain highlighted that in recent cycles, Binary CDD rises have been followed by either prolonged sideways trading or moderate corrections.

The current data supports what the analyst describes as a “stair-step” rally, where the market advances gradually while cooling short-term speculative activity. This pattern, if sustained, could prevent rapid depletion of buying momentum and allow for more stable long-term growth.

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Other on-chain data suggests that selling from long-term holders remains subdued, indicating limited pressure to exit positions at current price levels.

This aligns with the view that while near-term movements may be range-bound, the broader trend still holds the potential for future upside, contingent on broader participation and sustained investor demand.

Featured image created with DALL-E, Chart from TradingView