Over the past few days, Bitcoin has displayed notable price performance and momentum after reclaiming and surpassing the $80,000 mark, which previously acted as a strong barrier against upward movements. While BTC’s price has shown a positive trend, several key metrics are slowly turning positive and hinting at a bullish outlook for the flagship asset.
Shrinking Binance Bitcoin Perpetual-Spot Gap
Bitcoin’s price dynamics seem to be taking a notable turnaround on the Binance platform, the world’s largest cryptocurrency exchange. Joao Wedson, a verified author and the Chief Executive Officer (CEO) of Alphractal, revealed the development after examining the Perpetual-Spot price Gap, which is currently shrinking.
According to the expert, this key metric measures the discrepancy between Bitcoin’s spot price and the price of Binance’s perpetual futures. While the Perpetual-Spot Price Gap is narrowing, it continues to remain in negative territory, reflecting market caution and stabilizing sentiment.
This gradual close-up implies that traders are aligning their positions, decreasing the difference between the spot and futures markets. When it eventually closes, it would mean a balanced outlook among investors, potentially portraying a more stable trading environment in the future.
Wedson highlighted that the price gap has been closing since late 2024, which may be a sign of fading pessimistic sentiment. It is worth noting that Bitcoin frequently begins a bullish phase when the Perpetual-Spot Price Gap turns positive, as observed between 2020 and 2021 and again in 2024.
Considering past scenarios, Bitcoin’s ongoing correction might be nearing its end, and the asset could be gearing up to enter a bullish phase, allowing it to reclaim key resistance levels. The expert noted that traders who pay more for perpetual contracts usually do so because they anticipate more price growth.
Even though the gap is closing, Wedson warns that it may take a long time before it completely shifts toward positive territory. “That said, negative gaps can persist like in the 2022–2023 bear market,” he stated.
However, the current narrowing could indicate a change in mood, even as BTC is still trading between the $70,000 and $80,000 range. Furthermore, the gap turning positive is an early indication that buying momentum is returning to the market.
Binance Dominates BTC’s Spot Trading Volume
Amid the narrowing price gap, Binance is dominating a notable portion of BTC’s Spot Trading volume. Data from CryptoQuant shared by Coin Bureau, an informative platform, shows that Binance currently controls almost 50% of the spot trading volume.
Binance’s share increased from 33% on February 3 to 49% by the end of Q1 as BTC’s spot trading volume decreased. The platform’s share of altcoin spot trading volume also rose from 38% to 44% by the end of Q1. As a result, the leading crypto exchange became the top liquidity venue during market volatility.
