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NewsBTC 2025-05-20 06:00:58

Bitcoin Briefly Surpasses $106K Before Pullback, Analyst Sees Stable Momentum

Bitcoin has resumed its upward trajectory in the early hours of Monday, briefly surpassing the $106,000 mark before encountering resistance and experiencing a minor pullback. As of the time of writing, Bitcoin is trading at $104,153, representing a 1% decline over the past 24 hours. Despite this dip, the asset remains in a strong position overall, having posted significant gains over the past several weeks and retaining proximity to its all-time high levels. This price action follows a brief consolidation phase late last week, during which Bitcoin paused after climbing above $104,000. Amid this price performance, CryptoQuant analyst Avocado Onchain recently shared his interpretation of the trend based on derivatives and spot market data. Related Reading: Are Bitcoin Whales About to Cash Out? Key Metric Signals Possible Profit-Taking Ahead Market Buy Volume and Funding Rates Show a Shift in Rally Behavior In his recent analysis, “Bitcoin’s Rebound Without Overheating Is a Clear Sign of a Healthy Bull Market,” Avocado Onchain pointed to a shift in Bitcoin’s behavior around key price milestones. In previous breakout attempts, he noted that Bitcoin’s surge to new all-time highs was often accompanied by a sharp rise in Binance’s market buy volume and funding rates, both of which signaled overheated conditions. These conditions typically resulted in short-term corrections, as traders locked in profits and leverage unwound. However, the analyst observed that the current rebound is unfolding differently. Funding rates on Binance remain stable, and market buy volume is trending downward, which Avocado interprets as a sign of restraint rather than weakness. He argued that, unlike the sharp speculative rallies seen in prior phases, the present environment reflects cautious optimism and sustained accumulation. According to him, this more tempered recovery could be less vulnerable to abrupt pullbacks and instead support a more stable path to potential new highs. 📋 과열 없는 비트코인 반등, 건강한 강세장의 신호(Bitcoin’s Rebound Without Overheating Is a Clear Sign of a Healthy Bull Market) 이번 시즌 비트코인 가격이 신고가를 갱신할 때마다 바이낸스 시장가 매수 거래량과 펀딩비는 크게 상승하였고, 그 후 과열로 인한 조정기간이 찾아오는 유사한… pic.twitter.com/c0JCPzgbfY — Avocado (@avocado_onchain) May 19, 2025 Bitcoin On-Chain Trends Point to Continued Accumulation Avocado further emphasized that although buying activity is not surging at the same rate as in prior runs, the overall trend in market buy volume has been gradually increasing since 2023. He referred to on-chain data that shows a consistent uptrend, suggesting that longer-term investor appetite remains intact. With sentiment still recovering from recent corrections and derivatives markets appearing less overheated, he suggested the market structure is favorable for additional upward momentum in the near to mid-term. Related Reading: Bitcoin Exchange Stablecoins Ratio Surges—A Warning For Investors? While the analyst did not make a specific prediction regarding when Bitcoin might surpass its previous record, he highlighted that the current market conditions do not resemble previous overheated peaks. This, he noted, makes for a more constructive setup and potentially more durable gains if the trend continues. Featured image created with DALL-E, Chart from TradingView

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