Analysts Identify Signs of a Healthy Bitcoin Rally

The observed two corrections in the price of the leading cryptocurrency since 2024, following a surge in trading volume and funding rates, indicate a robust bull market, according to a report from [CryptoQuant](https://cryptoquant.com/insights/quicktake/682aeaaaf5db9e6f9266164b-Bitcoins-Rebound-Without-Overheating-Is-a-Clear-Sign-of-a-Healthy-Bull-Market).

Currently, the approach of prices towards their all-time highs (ATH) is not accompanied by an increase in speculation among bulls in derivatives or trading volumes on spot platforms. This, experts assert, does not reflect weakness in the upward momentum.

They believe that, unlike the two previous instances, the market now «remains light and cautious.»

*“Buyer sentiment continues to be favorable for further growth, suggesting that it’s not yet time to consider cashing out. On-chain signals and market data are very constructive,”* the review notes.

Analysts specifically [highlighted](https://cryptoquant.com/insights/quicktake/682a3b8f2614206496ed95cf-Bitcoin-spot-net-volume-delta-USD-on-Binance-is-back-in-positive-territory) that the delta of spot trading volume on Binance has shifted into positive territory. In simpler terms, buyer activity has increased while selling pressure has weakened, coinciding with Bitcoin surpassing the $100,000 mark.

CryptoQuant also pointed out a favorable technical environment. On the daily chart, there is a price compression occurring for the third time during the current bull run. A similar situation preceded the rally in 2018, experts explain.

In the second-largest cryptocurrency, conditions are forming for profit-taking. As Ethereum approaches the psychological level of $2,500, a sharp rise in trading volume has been noted, linked to the closure of long positions.

Analysts expect the asset to remain in a consolidation phase until a new wave of demand develops, leading to a breakout above the specified level.

It is worth noting that on May 9, Ethereum prices momentarily [increased by 18.8%](https://forklog.com/news/bezumnaya-svecha-ethereum-operedil-bitkoin-po-sutochnomu-tempu-rosta), rising above $2,300. This surge may have been driven by the [activation](https://forklog.com/news/v-ethereum-vyshel-apgrejd-pectra) of the Pectra hard fork.