Bitcoin is beginning to show signs of a strong recovery after recent consolidation. The asset has moved past the $87,000 level, gaining approximately 5.2% over the past week and 3.4% in the last 24 hours.
This uptick in performance marks a notable contrast to the steady downtrend observed in recent weeks, offering traders renewed momentum and sparking discussions around broader market sentiment.
One of the key developments supporting this shift appears to be rising liquidity on major exchanges. CryptoQuant analyst Darkfost highlighted that the amount of ERC-20 stablecoins held on Binance has reached a new all-time high, now surpassing $31 billion.
Binance continues to lead in trading volume among centralized exchanges, making this metric particularly important for analyzing near-term price action.
Stablecoin Accumulation and Investor Sentiment
According to Darkfost’s analysis on CryptoQuant’s QuickTake platform, the increasing stablecoin reserves suggest growing confidence among Binance users. These funds may represent capital being positioned for reentry into crypto markets, potentially signaling a wave of buying pressure.
Additionally, Binance may be accumulating stablecoins to manage liquidity for ongoing investor demand or hedging strategies. Notably, stablecoin balances on exchanges are often used as an indicator of future market participation.
When reserves increase, it typically reflects investor readiness to deploy capital into assets like Bitcoin and Ethereum. While this trend does not guarantee immediate upward price movement, it generally aligns with improving sentiment and rising demand.
📈Stablecoin on Binance ATH !
The amount of stablecoins (erc-20) available on Binance has just reached a new all-time high, surpassing $31 billion.
Seeing these stablecoins growing and remaining on Binance is generally a positive sign. pic.twitter.com/UJeX20XlBH
— Darkfost (@Darkfost_Coc) March 23, 2025
Bitcoin Short-Term Cost Basis Levels to Watch
In another report, CryptoQuant analyst Burak Kesmeci outlined important cost levels for Bitcoin investors based on holding duration. These “cost basis” levels represent the average entry price for groups of investors segmented by how long they’ve held their Bitcoin.
Monitoring these ranges helps assess which price levels may act as support or resistance in the market. Kesmeci identified four key price bands: $85,000 for holders between 1 to 4 weeks, $89,000 for 3 to 6-month holders, $98,000 for 1 to 3-month holders, and $63,000 for those holding between 6 to 12 months.
These zones are important because short-term investors often react to these levels—either taking profit or exiting when the price approaches their average entry cost. A move above $89,000, for example, could flip this zone into support and potentially open the path toward retesting higher levels closer to $98,000.
Featured image created with DALL-E, Chart from TradingView