Bitcoin [BTC] Is Still Flexing Serious Muscle Despite All the Volatility. By: Smith. Updated: May 27, 2021.

Bitcoin [BTC] is still flexing serious muscle despite all the volatility.

Bitcoin [BTC] has been displaying some serious strength and resilience despite the recent market volatility.

As we discussed previously, ‘Liberation Day’ on the 12th of April saw BTC swiftly dump 10.5% in a single week, tagging a five-month low at $76,191.

However, in the present scenario, even with macro headwinds returning due to fresh tariff noise and a 3.79% intraday pullback, it seems like the crypto behemoth is still unfazed.

This resilience could be setting the stage for a classic supply squeeze, especially considering another high-leverage long was wiped out today and the market absorbed it like a sponge.

Another long squeeze that didn’t break BTC

It seems like that intraday dip managed to shake out a ton of leveraged longs.

On-chain data from CryptoQuant flagged a sharp liquidation event: 2,560 BTC, or around $275 million, were squeezed out during the swift drop from $111,699 to $107,270 on the 23rd of May.

To put this in perspective, it was the first major long squeeze in over a month, dragging BTC down 3.79% in a single session.

This move highlights how quickly leveraged positions can be liquidated in volatile markets and how quickly prices react to such shifts.

Source: CryptoQuant

But if you thought that was enough to scare the big players, then think again.

Lookonchain data spotted a whale adding a 40x long with 11,588 BTC which was set to be liquidated at $105,108, coming in at a whopping $1.25 billion.

As BTC moved tightly in a range between $106k and $109k, the whale decided to close the position manually, which will now be putting 11k+ BTC back into circulation.

Now, one might expect such a large liquidation to significantly impact the market. However, despite the size of this unwind, BTC didn’t flinch. Could this be stealth accumulation setting the stage for a looming supply shock?

Bitcoin’s bull case builds

May’s data highlights a brewing supply squeeze, but it’s important to break down the numbers carefully.

Spot ETFs gobbled up 52,000 BTC, effectively locking those coins away from circulation.

Also, exchange reserves continued to decline, approaching the $107K price level, decreasing the supply of BTC available for trading. In total, around 70,000 BTC exited exchanges this month alone, further tightening liquidity.

Source: CryptoQuant

Factor in sovereign players like the UAE who are stacking both on the buy and mining front, and Singapore with its 68% BTC allocation in its portfolio.

And the real cherry on top? BlackRock’s iShares Bitcoin Trust (IBIT) alone saw an addition of 44,000 BTC to its holdings this month, showcasing the massive institutional demand that’s silently piling in.

So, to put this into perspective, the $1.25 billion long wipeout today might not even be a blip on the broader institutional accumulation radar.

In essence, Bitcoin seems to be quietly building a high-conviction base above $100k – one that could serve as the launchpad for the next major leg up.