Bitcoin continues to show strong growth, reaching $105,787 after a significant drop in April. This movement is driven by increased demand from spot markets.
Major Bitcoin Surge
According to Glassnode, Bitcoin surged from nearly $75,000 on April 9 to $105,787. The main factors behind this growth were the demand from spot markets and significant inflows from spot ETFs and centralized exchanges like Coinbase. At press time, Bitcoin was trading at $104,110, slightly below its recent peak.
Price Boosted by Short Squeeze
The recent rise of Bitcoin was also fueled by a short squeeze. Traders betting against the rally were forced to cover their positions, adding more demand in a compressed timeframe. This activity likely accelerated Bitcoin's climb above $100,000 in a short span, highlighting the impact of derivative markets.
New Support Zone Between $93K and $95K
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.
In conclusion, Bitcoin demonstrates resilience amid market fluctuations, with current trends indicating potential for further growth and the formation of key support levels.
