(BTC in US dollars) up more than 9% this week 🤔🏗️
(BTC in US dollars) just reached a new high above $118,000 after rising by more than 9% this week. But more importantly, are the underlying reasons behind this explosive recent performance. Here are the top 3 reasons 🕵🏼♀️
🤔The recent surge may have resulted from a supply shock. And although recent addresses indicate that holders have made profits of 100%, the level of selling pressure still remains weak.🐌🐌
Moreover, the bullish performance was supported by strong Bitcoin outflows from exchanges. CryptoQuant data revealed that exchange reserves dropped 📈 to below 2.4 million coins.
📍 Bitcoin Exchange Reserve (BTC USD) | Source: CryptoQuant
The aggressive outflows from the exchange reserves continued despite Bitcoin facing resistance at the price level of $110,000 since the last week of May.
In other words, the continuous outflows from exchanges revealed that it was only a matter of time until the breakout occurred, driven by buying pressure.
Whale activity 🐳 provides a bullish boost for Bitcoin (BTC in US dollars)
Earlier this week, whales 🐋 showed sales in the spot market but executed significant bullish trades in the derivatives sector.
Perhaps the outflows 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, strong liquidity injection from the whale group significantly contributed to Bitcoin's rise to new high levels.
Most of the spot sales were observed on Binance, while whales were mostly active on Coinbase.
However, according to recent analysis by CryptoQuant, Binance whales captured the recent rise.
But despite these observations, market data also revealed that there were intense profit-taking activities on the way up. This was also accompanied by heavy sell orders.
For example, Coinglass data revealed that there were about $95 million in spot sales and about $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 surge. Intense liquidations of shorts led to pressure on sell orders, as liquidated accounts had to buy to cover their value shortfall. $BTC
