Three reasons why the price of Bitcoin (BTC in USD) rose over 9% this week 🤔🏗️

(BTC in USD) just hit a new high above $118,000 after rising over 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 supply shock. And although recent addresses indicate that stockholders have achieved 100% profits, the level of selling pressure remains weak. 🐌🐌

Moreover, the bullish performance was supported by strong Bitcoin outflows from exchanges. CryptoQuant data revealed that exchange reserves dropped to less than 2.4 million coins.

📍Bitcoin Exchange Reserve (BTC USD) | Source: CryptoQuant

The violent exchange reserve outflows 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 before the breakout occurred, driven by buying pressure.

Whale activity🐳 provides a bullish boost to Bitcoin (BTC in USD)

Earlier this week, whales 🐋 showed sales in the spot market but executed significant bullish trades in the derivatives sector.

Perhaps the instant 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, the strong liquidity injection from the whale group significantly contributed to Bitcoin rising to new high levels.

Most instant sales were observed on Binance, while whales were mostly active on Coinbase.

However, according to a recent analysis by CryptoQuant, Binance whales captured the recent surge.

But despite these observations, market data also revealed there were intense profit-taking activities along the rise. This was also accompanied by heavy selling trades.

For example, Coinglass data revealed that there were about $95 million in instant sales and around $8.8 billion in deposit buy trades compared to $2.2 billion in filled sell trades on Binance.

Strong short positions highlighted another key reason behind the recent surge. Intensive short liquidations led to pressure on sell trades, as liquidated accounts had to buy to cover their value shortfalls. $BTC

BTC

121,811.88

+2.9%