Bitcoin has secured its highest weekly close to date, finishing just above $106,500—a development that has reinvigorated bullish sentiment. Among the most notable triggers is the Market Cap to Realized Cap (MVRV) Ratio, which has flipped positive again—a rare signal last seen ahead of BTC’s parabolic rally in late 2020.

Volatility Spikes as Market Clears Key Liquidity Levels

Over the weekend, Bitcoin briefly pierced the $107,000 mark before dropping nearly 4%, trapping over-leveraged long and short positions in a classic liquidity sweep. According to CoinGlass, liquidity pools at $107,500 and bids just above $102,000 were both cleared, sparking sharp intraday volatility.

Despite this pullback, the broader structure remains intact. Bitcoin continues to trade within a rising parallel channel and holds well above both the 50- and 200-day EMAs. Price action remains supported in the $72,000–$76,000 zone, with near-term resistance situated just beyond $107,000.

MVRV Flip Echoes Historical Bull Phases

Crypto analyst Markus Thielen drew parallels to the 2020 cycle, noting that the MVRV Ratio’s return to positive territory has historically aligned with the start of major bull markets. He emphasized the speed of the reversal as particularly unusual, suggesting that a new all-time high could arrive faster than expected—provided momentum sustains.

BTC is already up 40% since its April bottom and sits just 4% below its current record. This surge comes despite ongoing concerns over credit ratings and tightening monetary policy in the U.S.

Macro Landscape Uncertain, but Bitcoin Holds Firm

While Bitcoin’s correlation with equities has weakened, the S&P 500 remains a variable to watch. Traders are split—some see Bitcoin’s independence as a strength, while others caution that macro headwinds could still weigh on risk assets.

The week ahead brings limited macro events, with attention on jobless data and a May 25 speech from Fed Chair Jerome Powell. However, neither is expected to shift interest rate expectations significantly.

Watch Volume as Price Tests Upper Bound

Trading volume surged following the weekend dip—particularly on Binance—raising questions about whether the momentum stems from long-term conviction or short-term speculation.

Still, as long as Bitcoin maintains price action above $100,000 and key on-chain metrics remain bullish, the stage could be set for a breakout toward $130,000—turning a technical milestone into the next chapter of the 2025 bull cycle.

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