Bitcoin (BTC) continues to exhibit on-chain power regardless of a chronic interval of worth compression between $100,000 and $105,000.
In response to Constancy Digital Property’ VP of analysis, Chris Kuiper, the flagship crypto stays in its “Acceleration Section,” a interval characterised by elevated pockets profitability and volatility, at the same time as derivatives exercise dampens upward momentum.
Bitcoin closed at $104,119 on Could 13, with 99% of addresses in revenue. Constancy knowledge reveals that 10 days in Could have certified as high-profit, high-volatility classes. Traditionally, this section has aligned with breakout actions, together with the surge that adopted the US election in late 2020.
Regardless of these circumstances, Bitcoin has been unable to decisively breach its higher resistance ranges, with closing costs largely contained inside a slim $94,000 to $104,000 band all through the primary half of Could.
Derivatives exercise creating headwinds
In response to a Could 16 report by CryptoQuant contributor Darkfost, the restrained worth motion stems from structural pressures within the derivatives market.
The report highlighted that cumulative internet taker quantity, a measure of aggressive buying and selling stream, has remained detrimental since Bitcoin reclaimed the $100,000 degree. This imbalance reveals that quick positions have outweighed longs, producing sustained promoting stress.
The bearish positioning signifies that merchants are skeptical of a near-term transfer to new all-time highs and are actively betting towards additional upside. So long as this imbalance persists, Bitcoin’s upward potential stays capped regardless of favorable circumstances in spot and on-chain markets.
Value stagnation within the presence of bullish fundamentals just isn’t unprecedented. Nonetheless, even sturdy community alerts might be muted briefly when by-product flows overpower spot accumulation.
The present divergence between derivatives exercise and on-chain profitability highlights the friction in Bitcoin’s worth discovery course of.
Bitcoin volatility hits document low vs. gold
Bitcoin’s muted worth motion has additionally resulted in a historic compression of volatility, which has hit ranges final seen greater than 10 years in the past.
VanEck’s head of digital property analysis, Matthew Sigel, famous on Could 16 that Bitcoin’s 30-day volatility has dropped beneath gold’s for the primary time since knowledge monitoring started.
Primarily based on Bloomberg terminal metrics, the BBR/GC1 ratio is now at 0.857, its lowest degree over a decade.
Whereas derivatives positioning stays a near-term barrier, historic patterns recommend that extended durations of volatility suppression have usually preceded massive directional strikes.
Whether or not that materializes once more is dependent upon shifts in taker stream, macro circumstances, and liquidity circumstances.
On the time of press 1:56 am UTC on Could. 17, 2025, Bitcoin is ranked #1 by market cap and the worth is down 0.55% over the previous 24 hours. Bitcoin has a market capitalization of $2.05 trillion with a 24-hour buying and selling quantity of $44.01 billion. Study extra about Bitcoin ›
On the time of press 1:56 am UTC on Could. 17, 2025, the entire crypto market is valued at at $3.28 trillion with a 24-hour quantity of $109.93 billion. Bitcoin dominance is at the moment at 62.52%. Study extra concerning the crypto market ›
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