- Bitcoin surged from $75K to over $105K, mainly supported by spot ETFs and exchanges like Coinbase.
- ETF inflows peaked at $389 million daily in April, now averaging $58 million per day, fueling initial upward movement.
- A new accumulation zone between $93K and $95K may serve as support during short-term pullbacks.
Bitcoin recently reached $105,787, marking a significant move from its April 9 low of nearly $75,000. Data from Glassnode shows this recovery was mainly driven by demand from spot markets, with major inflows from spot ETFs and centralized exchanges like Coinbase. As of press time, Bitcoin was trading near $104,110, slightly below its recent peak.
Glassnode reported that ETF inflows peaked on April 25, reaching $389 million in daily volume. These flows have since tapered off, currently averaging around $58 million daily. However, this initial surge played a critical role in lifting Bitcoin higher. Off-chain spot flows also showed a shift, with Coinbase seeing strong net buying pressure while sell pressure on Binance decreased.
Activity indicates that investors are actively buying dips, especially on the Coinbase platform. People are evidently buying Bitcoin when there is a temporary decline in its price. This shows that buyers are using every dip to increase their holdings, contributing to a spot-driven recovery in the market.
Short Squeeze Amplifies Price Jump
Bitcoin’s recent climb was also intensified by a short squeeze. Traders betting against the rally were forced to cover positions, adding more demand in a compressed time window. This activity likely accelerated Bitcoin’s climb above $100,000 in a short span, reflecting the impact of derivative markets playing catch-up.
Since May 9, Bitcoin has been trading within a consolidation range between $100,703 and $105,787. Analysts note that this pattern mirrors previous pauses seen in this bull cycle. The current zone of sideways movement is seen as a period of reaccumulation before a possible breakout toward the all-time high of $109,114, last reached in January.
Support Zone Between $93K and $95K Emerges
Glassnode identified a key support zone between $93,000 and $95,000. This range aligns with the cost basis of short-term holders who entered the market in the past 155 days. A large volume of coins changed hands in this area, potentially forming a strong demand floor in case of short-term corrections.
