- Bitcoin briefly crossed $107,000 before pulling back to $105,506, down 0.07% in 24 hours.
- Binance funding rates stay stable; analyst sees controlled growth, not overheating, in current rally.
- Over 3,090 BTC ($325M) left Binance; MVRV ratio at 2.33 signals room for growth.
Bitcoin showed signs of strength early on Monday when it momentarily pushed past the $107,000 mark, only to face resistance and undergo a minor pullback. As of Tuesday, the cryptocurrency is trading at $105,506, experiencing a slight decline of 0.07% in the last 24 hours.
Despite a small dip, the cryptocurrency’s broader trend remains solid. It has continued its upward momentum over the past several weeks and is still hovering near its all-time high. This price action follows a short consolidation phase last week when the cryptocurrency held steady after briefly surpassing the $104,000 mark.
Spot and Derivatives Signals Shift
In light of recent price movements, CryptoQuant analyst Avocado Onchain offered an analysis of Bitcoin’s behavior, particularly in relation to its movement in the derivatives and spot markets. In his recent report titled “Bitcoin’s Rebound Without Overheating Is a Clear Sign of a Healthy Bull Market,” Avocado pointed out how Bitcoin’s current rally differs from previous ones.
Historically, when it surged to new all-time highs, the market saw sharp increases in Binance’s market buy volume and funding rates. These metrics often indicated overheated conditions, leading to short-term corrections as traders took profits and unwound leverage.
This time, however, the analyst has observed more stability. Binance’s funding rates are stable, while market buy volume has been decreasing. Avocado interprets these signs not as weakness but as a sign of restraint, indicating a more controlled and healthy growth phase for Bitcoin.
Bitcoin Shows Steady Accumulation Trend
Avocado says Bitcoin’s price shows cautious optimism and steady accumulation, unlike the wild spikes seen in earlier runs. That points to a more stable environment, less likely to see sudden drops. A slow, steady climb might help it to reach new highs without the typical volatility associated with sharp speculative movements.
Although buying activity is not as aggressive as in past surges, market buy volume has been rising steadily since 2023. On-chain data supports this, showing long-term investors are still holding strong. With sentiment slowly bouncing back from recent dips, the market looks set for more growth in the near to mid-term.
Adding to the optimistic outlook, another analyst from CryptoQuant, Amr Taha, noted recent outflows from Binance that support a positive trend. On May 19, more than 3,090 BTC, valued at roughly $325 million, were withdrawn from the exchange. As assets continue to move off exchanges, this lowers the liquid supply, supporting the possibility of higher prices if demand remains strong.
Taha also mentioned Bitcoin’s MVRV ratio, which is currently at 2.33—below the key 2.75 level that has previously marked major corrections due to profit-taking. However, with the current ratio remaining well below that level, BTC is still considered to be in a neutral or undervalued phase, offering potential for further upward movement.
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