Bitcoin’s Wild Ride: Is the Bull Market Back? 🚀💰

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  • Bitcoin saw a curious mix of on-chain and off-chain accumulation during the recent lows, a clear sign that buyers are not just convinced, but perhaps a tad obsessed.
  • The liquidation heatmap, a veritable treasure map of financial peril, hinted that a short-term price dip was as likely as a dwarf finding a quiet moment in a tavern.

On the 18th of March, Bitcoin [BTC] set a new weekly close at $106,454 on Binance, surpassing the previous high of $104,463 from December. The daily close also edged higher by 0.29% ($310) compared to the previous record. It’s like the market decided to have a little party, and Bitcoin was the guest of honor, showing up with a fancy new price tag.

On-chain data indicates that this rally followed a strong accumulation phase established in early May at the $94K level. It’s as if the market decided to take a deep breath and say, “Alright, let’s do this!”

Bulls gained strength as spot demand increased, though the 180-day Open Interest Delta suggests whales remained cautious throughout the surge. It’s like they’re the wise old wizards, watching from the shadows, not quite sure if the party will last.

The Spot Cumulative Volume Delta (CVD) for Coinbase and Binance indicated growing bullish momentum since mid-April. Coinbase recorded a peak of $45 million in daily volume when BTC was near $80K. Meanwhile, Binance, which experienced heavy net selling in April, saw this selling pressure ease significantly, becoming only a mild net seller. It’s like Binance decided to take a break from being the grumpy bear and join the party.

Overall, exchange activity suggests that accumulation near local lows played a key role in fueling Bitcoin’s explosive rally toward $108K. It’s like the market decided to throw a fireworks display, and Bitcoin was the biggest firework of them all.

The accumulation was also on-chain, but traders should be wary

BTC’s Cost Basis Distribution Heatmap above shows the supply acquired by addresses at specific price levels. The $85k region saw a notable amount of supply acquired. The accumulation was even more intense in the $93k-$95k area. It’s like a treasure trove of Bitcoin, just waiting to be discovered.

Hence, this area was expected to be a strong support zone. Bitcoin was unlikely to fall lower due to the amount of buying in that area. On-chain evidence of accumulation backed up evidence of buyer strength from the spot CVD on exchanges. It’s like the market decided to build a fortress of Bitcoin, just to keep the bears at bay.

At press time, the Realized Price for Bitcoin short-term holders (holding for less than 155 days) stood at $94.2K. This aligns with the supply clusters visible on the Cost Basis Distribution Heatmap, reinforcing the strength of the $93K–$95K region as a key support zone in the event of a pullback. It’s like the market decided to draw a line in the sand and say, “Nope, not going any lower!”

The 2-week liquidation heatmap showed a cluster of liquidation levels at the $106.6k region. This liquidity was swept, and was followed by a swift reversal. The next magnetic zone of note was at $98.4k-$101k. Since the price is attracted to liquidity, Bitcoin is likely to drop further in the short-term. It’s like the market decided to play a game of hot potato, and Bitcoin is the potato.

However, as the other pieces of evidence showed, bullish belief remained firm in the market. The highest daily and weekly closes on record also reflected bullish intent. It’s like the market decided to throw a big, bold, and beautiful party, and Bitcoin is the star of the show. 🎉🚀

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2025-05-20 09:15