- Bitcoin saw accumulation on and off-chain during the recent lows, reflecting conviction from buyers.
- The liquidation heatmap signaled that a short-term price dip was likely.
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.
On-chain data indicates that this rally followed a strong accumulation phase established in early May at the $94K level.
Bulls gained strength as spot demand increased, though the 180-day Open Interest Delta suggests whales remained cautious throughout the surge.
Source: Glassnode
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.
Overall, exchange activity suggests that accumulation near local lows played a key role in fueling Bitcoin’s explosive rally toward $108K.
The accumulation was also on-chain, but traders should be wary
Source: Glassnode
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.
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.
Source: Glassnode
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.
Source: Coinglass
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.
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.
