(BTC in USD) just hit 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 suggest that shareholders have made profits of 100%, the level of selling pressure remains weak.🐌🐌

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

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

Aggressive exchange reserve flows continued outwards despite Bitcoin facing resistance at the $110,000 price level since the last week of May.

In other words, the continuous outflow of reserves revealed that it was only a matter of time before the 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 large 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, the strong liquidity injection from the whale group significantly contributed to Bitcoin's rise to new high levels.

Most spot sales were observed on Binance, while whales were mainly active on Coinbase.

However, according to recent analysis by CryptoQuant, Binance whales seized the recent rise.

But despite these observations, market data also revealed intense profit-taking on the way up. This was also accompanied by heavy selling trades.

For example, Coinglass data revealed that there were about $95 million in spot 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 rise. Intense short liquidations caused pressure on sell trades as liquidated accounts were forced to buy to cover their value shortfall.$BTC