Key on-chain data reveals an unexpected trend – despite Bitcoin prices lingering near record highs, major stakeholders are not transferring their cryptocurrency to exchanges. This, according to a post shared on July 23 by CryptoQuant analyst Arab Chain, indicates a firm belief in the longevity of Bitcoin’s price surge.

The Bitcoin Flow Pulse (BFP) indicator displays a notably low volume of Bitcoin moving towards exchanges, even after the digital currency recorded a milestone high of $123,091 according to CoinMarketCap. Traditionally, a rise in BTC inflow to exchanges hinted at a potential sell-off, increasing supply and often leading to a price decline. The lack of such a surge now is seen by Arab Chain as a positive sign of steadfast holders.

Bitcoin’s price trajectory reflects this balance between confidence and caution. Although the digital asset has risen 16.2% over the past month and 8.9% in the past two weeks, it has entered a consolidation phase following its all-time high nine days ago. CoinGecko data shows it trading between $118,042 and $120,222 in the past 24 hours, with resistance near the $123,000 mark.

Meanwhile, CryptoQuant highlights a surge in retail selling pressure, especially on Binance. Inflows from smaller traders have significantly increased on the exchange, and Net Taker Volume has turned negative, likely indicating a bearish sentiment among this group. However, whales in the market are snapping up everything, with on-chain data showing that $200 million in BTC was withdrawn from exchanges yesterday. This suggests that big investors are taking advantage of the fear among retail traders.

The market currently teeters on a precarious balance. While low exchange inflows suggested by the BFP indicate strong conviction among holders, there are also signs of profit-taking and increased retail selling that introduce near-term obstacles that need to be considered.

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