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Yesterday was one for the history books — Bitcoin posted its highest-ever daily and weekly close at $106.5K. But before the bulls could break out the champagne, BTC reversed within hours, dropping nearly 5%, and celebrations quickly turned into caution.
A Dual-Faceted Reversal
This sharp reversal was fuelled by both technical and fundamental factors.
On the macro side, Japanese 40-year bond yields are surging, now at their highest in over two decades. That’s not just bad news for crypto — Nasdaq and S&P 500 futures were also dragged down. The move stoked fears of a repeat of last year’s yen carry trade unwind, which coincided with Bitcoin revisiting the $50K region. Heightening the concern, Japanese Prime Minister Shigeru Ishiba declared that the country’s financial condition was worse than Greece in 2008 — a statement that rippled through global risk markets.
On the technical front, Bitcoin’s retracement came after a 40% rally over six consecutive green weeks, culminating in a test of massive resistance from two prior all-time highs. A 5% correction following such a move isn’t unexpected — but the fact it came right after a breakout makes it more telling. Market makers appear to have flushed over-leveraged long positions, only to trap late-arriving bears in fresh shorts. Classic liquidity sweep.
Bulls Still in Charge
Now back above $106K, those short sellers have been liquidated by the same hands that punished the bulls just 18 hours prior. It’s clear the bulls still have the upper hand. Sentiment has cooled slightly — the Fear & Greed Index ticked down three points to 71 — but Bitcoin dominance remains on a tear, printing six consecutive green days and now sitting less than 3% away from an all-time high.
Stormrake Spotlight: Bittensor (TAO) ($417)
Stormrake Spotlight: Bittensor (TAO) ($417)
TAO made a new local low yesterday before bouncing cleanly off the highlighted $390 support zone. From that low, it’s recovered nearly 8% and reclaimed all key moving averages. The higher low at $390 reinforces the bullish structure — the next key step is a break above $490 to confirm continuation.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
As mentioned, Bitcoin saw an extreme 24 hours — a vertical rally followed by a fast reversal to the bottom of the previous range near $101.8K. But bulls stepped in with force, launching an even steeper rally back to $106.6K. Both sides of the book got wiped — but spot buyers are still sitting comfortably as BTC knocks on the door of its all-time high.
BTC Total ETF Flows for 19 May: $ + 361.5 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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