Bitcoin’s surge to $106,000 earlier this week has been primarily driven by robust spot market demand, with Coinbase seeing net buying pressure of $45 million per day, according to Glassnode’s latest report.

The rally, which began after the king cryptocurrency dipped to just below $75,000 in early April, has been marked by strong accumulation phases, exchange-traded fund (ETF) inflows, and a cooling of sell-side pressure, pointing to sustained bullish momentum despite recent profit-taking by long-term holders.

Spot Demand Outpaces Derivatives

Unlike previous rallies fueled by leveraged speculation, this latest uptrend has been characterized by organic sport market accumulation.

According to the Glassnode report, BTC changed hands heavily in the $93,000 to $95,000 range, which is now acting as a key support level as it coincides with the cost basis of traders who entered the market within the last 155 days.

The price has respected this range amid sideways accumulation, reinforcing the “stair-stepping” structure visible on the Cost Basis Distribution heatmap.

Meanwhile, derivatives markets lagged, with perpetual futures open interest dropping 10%, from 370,000 BTC to 336,000 BTC, possibly indicating a substantial short squeeze as bears were flushed out.

However, funding rates remain neutral, reflecting a lack of excessive long-side leverage, something which Glassnode’s experts believe is a sign the rally could have more room to run.

Spot Bitcoin ETF inflows also played an important role, peaking at $389 million on April 25 before tapering to around $58 million per day. Coinbase, a preferred exchange for U.S. institutional investors, recorded consistent buying. At the same time, the sell pressure on its global counterpart, Binance, eased from $71 million per day in March to just $9 million, suggesting investors were actively buying the dip.

Long-Term Holders Cash In, But Demand Remains Strong

Despite the rally, long-term Bitcoin holders have started taking profits, as CryptoQuant analyst Avocado Onchain noted in a May 15 report.

According to them, the Binary Coin Days Destroyed (CDD) metric, which tracks dormant coins being moved, has risen to 0.6. While it shows these holders are offloading dormant BTC for profit, the metric has not reached the 0.8 zone seen during previous bull market highs.

Glassnode’s own data corroborates this trend, showing that short-term holder (STH) realized profits are spiking to nearly +3 standard deviations above the 90-day average. However, the analytics firm cautioned that profit-taking has not yet reached exhaustion levels, since in past rallies, higher deviations closer to +5 were needed to deplete demand and mark local tops.

Ripple has reached a decisive price range of $2.3-$2.5, with an impending breakout determining the upcoming trend. A bullish breakout will pave the way for a sustained rally toward the $3.1 range.

XRP Analysis

The Daily Chart

XRP’s recent bullish trend has been halted at the upper boundary of a prolonged descending wedge near the $2.7 level, triggering a bearish retracement. However, the price is now consolidating within a decisive and tight range between $2.3 and $2.5, bounded by the wedge’s apex. This zone has become a critical battleground between buyers and sellers.

The current pullback may also be interpreted as a retest of the recently broken 100 and 200-day moving averages, which could reintroduce demand into the market. A breakout from this narrow range appears imminent, and the direction of this breakout will likely determine XRP’s next major move. A bullish breakout above $2.5 would open the door for a sustained rally toward the $3.1 resistance area.

The 4-Hour Chart

On the lower timeframe, Ripple has maintained a broader bullish structure in recent days, breaking out above the descending wedge pattern. However, the asset faced significant selling pressure around the $2.7 resistance and was swiftly rejected, falling back into the wedge formation. This movement suggests a potential bull trap and false breakout.

Currently, XRP is holding above the key support at $2.3, where buying interest could reemerge. If this level holds, a renewed bullish push toward the $2.7 zone is likely. Still, the market is awaiting a decisive breakout from the $2.3–$2.5 consolidation range.

If the breakout is bullish, the price could quickly surge toward the $3.1 resistance. Conversely, a breakdown below $2.3 might trigger a sharp decline toward the $2 support, especially if accompanied by a short-squeeze or panic selling from overleveraged long positions.

Ethereum has experienced a strong upward rally over the past two weeks, pushing from the $1,500s to above $2,600. However, signs of exhaustion are beginning to surface. While higher timeframes remain bullish for now, short-term caution is warranted.

Technical Analysis

By ShayanMarkets

The Daily Chart

ETH has hit a technical ceiling just under the $2,900 resistance, which aligns closely with the 200-day moving average. This zone previously acted as a major breakdown point in February and is now serving as a supply area. The RSI also recently entered overbought territory, suggesting that momentum is fading as price approaches this resistance.

A rejection from here could lead to a pullback toward the $2,200 support zone and the 100-day MA located near the $2,100 mark. A confirmed breakout above $2,900 would shift the bias back to bullish, with a potential continuation toward the critical $4,000 zone.

The 4-Hour Chart

Dropping lower on the 4-hour timeframe, Ethereum is showing signs of weakening momentum. After the explosive move above $2,100, the price has been consolidating within a narrow range near the $2,500–$2,600 region.

A clear bearish divergence is now confirmed on the RSI, with price making higher highs while RSI makes lower highs. This typically indicates a potential correction ahead. If ETH loses the $2,450 support, a retracement toward $2,200 and even $2,050 becomes likely. On the flip side, reclaiming $2,600 with strong volume could invalidate the bearish signals and open the path for a run at the $3,000 area.

Sentiment Analysis

The recent rally triggered a sharp wave of short liquidations, which helped fuel the aggressive price surge. As seen in the short liquidation chart, the largest liquidations occurred near $2,400–$2,600, signaling a large portion of sellers were forced out of the market. This typically leads to short-term cooling, as the “fuel” for the rally gets exhausted.

The liquidation chart shows a clear uptick in forced closures over the past week, aligning with Ethereum’s breakout. These spikes often mark local tops, as the removal of excessive short exposure removes the momentum driver. With liquidations now tapering off, the price may struggle to push higher without fresh demand entering the market. This context reinforces the idea that ETH could consolidate or correct before any meaningful continuation.