- Bitcoin’s price briefly hit $120K before large players offloaded, leading to a sharp retracement back toward the $117K level.
- The Binance perpetual-spot spread turned positive, reflecting increased long-side activity and short-term optimism among retail traders.
- Despite volatile action and trader FOMO, Bitcoin funding rates remained near neutral, indicating no aggressive positioning dominance on either side.
Bitcoin’s price action remains unstable after Binance perpetual contracts traded above spot, triggering reactive behavior among traders within the $116K–$120K range.
Perpetual Contracts Flip Above Spot on Binance
Data from Binance shows the perpetual price of Bitcoin recently flipped above the spot market price. This shift marked a rise in long-side pressure, sparking increased leverage from bullish traders. The transition broke a prolonged period during which perpetual prices remained under spot, reflecting growing investor eagerness.
According to Boris), this development fueled a burst of FOMO-driven long positions. The tweet noted, “Binance perpetual price flipped above spot, triggering FOMO among traders.” This sudden optimism followed a short-term price move from $116K to $120K on July 22.
However, the market quickly corrected. Larger players used the opportunity to offload assets near the $120K resistance level. This led to a sharp retracement back to $117K, showing how fast bullish sentiment was absorbed.
Whales Use Long Pressure to Sell at Resistance
The price zone around $120K has become a repeated resistance level, attracting both retail enthusiasm and institutional caution. As smaller traders rushed to long Bitcoin, whales reportedly placed large sell orders, turning the rally into a trap.
Boris further explained, “Large players used this as a selling opportunity—pushing BTC down from $120K to $117K.” The resulting price rejection reflects the cautious stance of seasoned market participants who remain hesitant at current levels.
This price behavior is an indication of a situation in which short-term euphoria can be easily overturned. Since the beginning of the New Year, Bitcoin has been experiencing headwinds around the key technical levels instead of pushing up into the new trend
Market Structure Remains Fragile and Reactive
Within the current price range, trader behavior appears increasingly reactive. The fast transitions between long positioning and sharp selling suggest unstable liquidity conditions. Traders are not waiting for confirmations, choosing instead to follow momentum.
Despite these volatile moves, funding rates remain neutral, signaling that neither side holds a dominant edge. While the long pressure suggests bullish activity, the lack of follow-through points to an uncertain market structure.
The perpetual-spot spread flipping positive may serve as a warning rather than a breakout signal. As of writing, Bitcoin’s direction remains unclear, with heightened sensitivity to even minor price shifts.
