- This week’s volatility culminated on Thursday with Bitcoin jumping above $81,000.
- Analyst Ali Martinez believes that Bitcoin continues to trade in an ascending channel that has formed since April 2026.
This week Bitcoin fell below $80,000 as weak exchange outflows, high leverage, and renewed inflation concerns weighed on the market. BTC recovered on Thursday. above the $81,000 mark, and now traders are watching to see if it can Bitcoin hold the key support level near $79,000 and avoid a deeper correction.
On According to According to CryptoQuant, Bitcoin outflows from exchanges decreased sharply by May 11. Daily withdrawals fell to 19,995 BTC, significantly below the 28,000 to 35,000 BTC range seen earlier this month. Furthermore, this figure remained significantly below the average for this period of 25,600 BTC.
Cryptoquant data
This week, BTC inflows to exchanges remained relatively stable. They turned positive, signaling that more Bitcoin was concentrated on exchanges rather than in private wallets. Traders often interpret positive net inflows as a sign of increasing selling pressure.
This trend reduced the market’s ability to absorb sudden selling pressure. As liquidity accumulated on exchanges, the risk of price declines increased significantly.
The derivatives market intensified pressure. From May 8 to 10, open interest steadily increased, exceeding average levels, but funding rates remained negative, indicating aggressive short positions by traders in anticipation of further declines.
Once Bitcoin As the market began to fall, long leveraged positions were liquidated. On May 12 alone, the volume of long liquidations exceeded the volume of short liquidations by almost twelve times.
Cryptoquant data
Beyond the cascade of liquidations, macroeconomic concerns fueled bearish sentiment. Investors reacted cautiously to inflation concerns ahead of the release of U.S. consumer price index (CPI) and producer price index (PPI) data. As a result, uncertainty spread to risk-sensitive markets, including cryptocurrencies.
However, despite the recent weakening, Bitcoin still recovered to a daily high of $81,957 (data CoinGecko) with a daily trading volume of $38 billion. Crypto analyst Ali Martinez said that Bitcoin continues to trade in the ascending channel that has defined price dynamics since April.
According to Martinez, earlier Bitcoin bounced strongly whenever the price touched the lower boundary of this channel. Previous bounces from $71,000 and $75,000 triggered rallies exceeding 10%.
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