According to CryptoQuant analysts, Bitcoin shows a steady rebound without market overheating, signaling a healthier bull cycle.
By Godfrey Benjamin
Editor Julia Sakovich
Updated
4 mins read
The world’s largest cryptocurrency, Bitcoin BTC $96 611 24h volatility: 2.1% Market cap: $1.92 T Vol. 24h: $29.09 B , is showing strength again. Market data points to a steady rebound not driven by speculative spikes. Notably, this current pattern, which is related to CryptoQuant analysts, suggests a more stable phase in the current bull cycle.
CryptoQuant analyst avocado_onchain points out a key difference in this current rally. Unlike past bull runs, the Bitcoin rebound is not fueled by sudden spikes in funding rates or heavy trading volumes on Binance.
However, this is an important shift. For one, price rallies were often followed by abrupt corrections in earlier cycles. These drops come after the market is overheated. They were marked by a surge in leveraged buying and short-term speculation.
Bitcoin’s Rebound Without Overheating Is a Clear Sign of a Healthy Bull Market
“This indicates that buying sentiment remains favorable for further upside, suggesting that it’s not yet time to consider an exit.” – By @avocado_onchain pic.twitter.com/JtLItHr0Qz
— CryptoQuant.com (@cryptoquant_com) May 20, 2025
Based on the current trends, the situation is different. Market buy volume on Binance is trending downward even as Bitcoin regains upward momentum. Funding rates also remain stable. This suggests that the current price recovery is not built on hype but on more grounded investor sentiment.
The analysis also shows that even though investor interest has improved since the last price correction. The market has not yet entered a phase of aggressive buying. Instead, there is a steady and measured rise in demand.
It is worth noting that since 2023, on-chain data shows that Bitcoin market buy volume has climbed slowly, but consistently. This is marked by what the analyst describes as a yellow arrow in trading charts.
Coinspeaker recently noted that Bitcoin is teasing a potential price breakout. As of now, Bitcoin is trading at $105,288.89 following a 2% rebound. Analysts are watching for a “golden cross” pattern to form. This is a bullish signal that occurs when the short-term, say 50-day simple moving average, crosses above the longer-term 200-day simple moving average.
Still, the takeaway from CryptoQuant’s latest findings is clear: Bitcoin may be on a solid path upward, but without the kind of overheating that has triggered major setbacks in the past.
Again, while no one can pinpoint the exact timing of a new all-time high, the current signals suggest there is still room to grow. This outlook encourages caution rather than euphoria, which could serve the long-term sustainability of this rally.
According to Lookonchain’s data, several major Bitcoin holders, known as whales, are making large withdrawals from centralized exchanges. This signals strong confidence in the asset’s future price movement.
Many whales are accumulating $BTC!
bc1qcp withdrew another 1,350 $BTC($141.91M) from #Binance 8 hours ago and currently holds 20,723 $BTC($2.19B).
bc1qpu (linked to Abraxas Capital) withdrew 675 $BTC($71.03M) from #Kraken 7 hours ago and currently holds 1,797 $BTC($190.11M).
— Lookonchain (@lookonchain) May 20, 2025
In the past 24 hours, notable activity has been recorded from wallets making sizable exits from Binance and Kraken. Per the update, wallet bc1qcp withdrew 1,350 BTC (worth over $141 million) from Binance, bringing its total holdings to 20,723 BTC, or roughly $2.19 billion.
Around the same time, wallet bc1qpu, likely connected to Abraxas Capital, removed 675 BTC from Kraken and now holds 1,797 BTC, valued at approximately $190 million.
Another newly created wallet, bc1q5k, also withdrew 500 BTC from Binance, equal to $51.5 million. This cluster of high-value movements implies ongoing accumulation by institutional players. It also shows long-term holders who prefer to store Bitcoin offline, away from the influence of short-term trading.
It is worth noting that such movements often signal a bullish outlook. This is because investors typically transfer funds off exchanges when they plan to hold rather than sell.
Michael Saylor’s Strategy has acquired $764 million worth of Bitcoin in line with the current positive outlook. This brought its total holdings to 576,230 BTC amid growing BTC yield. Japanese investment firm Metaplanet also executed its second-largest single Bitcoin purchase to date. The firm purchased 1,004 BTC for approximately 15.2 billion yen ($104.6 million).
These acquisitions are further fueling the scarcity that can help drive BTC price up soon.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
