How could I have been this wrong about my metro friend?

I'm a guy, bi and in-the-closet and I have a friend (guy) who is metro acting. I've never asked him if he was straight or bi or gay. Over the past couple of years, I've been getting closer and closer and closer to him. I would brush against his arm or hand and he wouldn't move away. Eventually the hugs hello and bye got longer and longer and longer, with cheeks pressed against each other.

I started leaning against him as we watched tv, and he was fine with it. I started kissing his cheek hello and bye and he was fine with it. I began holding his hand while we watch tv or were driving around. I would rub his leg/thigh and he didn't even say anything. Honestly, I feel so much in love with him now. This has been going on for months. Yet, he never initiates any of this. He just doesn't pull away when I do it. He's let me cuddle up with him once and softly stroke his chest on top of his shirt while we talked about life.

Last night, he finally mentioned that he wants to be friends, but is very confused by the way I act around him and he was kinda uncomfortable with the physical contact. I'm so in love with him it hurts so bad inside.

Well, when we were saying bye, I just went for a quick guy hug, but he held on extra long and tight again and pressing his cheek to mine but I just kinda stood there motionless because I was hurting so much.

Tell me, how can I have been that wrong? I thought all the signs were there that he was ok with everything. So, let my sad experience be a warning to others. If they don't say they're gay/bi, don't assume it by the way they act. And if you don't have a clear go-ahead, they just may be tolerant.

Being bi is so hard because it's so easy to fall in love with your close friends. Arghhhhh. How could I have been soooooo wrong? Where did I go wrong???