(BTC in USD) just reached a new high above $118,000 after rising by more than 9% this week. But more importantly, are the underlying reasons for this recent explosive performance. Here are the top 3 reasons🕵🏼♀️
🤔 Perhaps the recent rise was due to a supply shock. Although recent headlines indicate that stockholders have realized a 100% profit, the level of selling pressure remains weak.🐌🐌
Moreover, the bullish performance was supported by strong Bitcoin outflows from exchanges. CryptoQuant data revealed a decrease📈 in exchange reserves to below 2.4 million coins.
📍Bitcoin (BTC USD) Exchange Reserve | Source: CryptoQuant
Heavy outflows from exchange reserves continued despite Bitcoin facing resistance at the $110,000 price level since the last week of May.
In other words, the continuous outflows from exchanges revealed that it was only a matter of time before a breakout occurred, driven by buying pressure.
Whale activity🐳 provides a bullish boost for Bitcoin (BTC in USD)
Earlier this week, whales 🐋 showed selling in the spot market but executed significant bullish trades in the derivatives sector.
Perhaps the outgoing spot flows from whale addresses caused false sell-offs, but market activity may have misled retail traders.
Recent data revealed a shift in whale activity since mid-week, this time favoring strong accumulation of Bitcoin (BTC USD).
In other words, the strong liquidity injection from the whale group significantly contributed to Bitcoin's rise to new highs.
Most spot sales were observed on Binance, while whales were mainly active on Coinbase.
However, according to a recent analysis by CryptoQuant, Binance whales capitalized on the recent rise.
But despite these observations, market data also revealed intense profit-taking on the way up. This was also accompanied by significant sell orders.
For instance, Coinglass data revealed about $95 million in spot sales and approximately $8.8 billion in deposited buy orders compared to $2.2 billion in filled sell orders on Binance.
Strong short positions highlighted another key reason behind the recent rise. Intense liquidations of shorts led to pressure on sell orders, as liquidated accounts were forced to buy to cover their value shortfall.$BTC
