Guy's Behavior

Is my guy friend showing interest and I'm taking it wrong?

My guy friend and I always end up flirting when we're together. He's held my hand all night at a party, always hugs me, gives me nicknames, brings up the day we met, etc. We went to a bar together and were chatting about about our friendship and how I had said he's like a brother and he got a smile and said "you and I are never going to be close friends. We just aren't. I have enough close friends." I was hurt and got quiet and he told me I need to not be so scared of things. He told me he didn't mean to come off in a bad way and that he just didn't want to have the whole friend conversation. Then he said "it's just you and me tonight, we're here together, let's enjoy the moment/night." He then asked me "what do you want?" I froze because I didn't know what he was asking. A little later when we were walking home he was teasing me about my sweatshirt and I said he was making fun of me. We were laughing and walked a little further and then he got quiet and said "I... actually think you look cute." We both just stood there in silence for a bit, we don't normally talk like that to each other. I just ignored it and changed the subject, I didn't know what to say. A few nights later we ended up texting until he went to bed, which we never do. The next night we were texting again and I said I enjoyed hanging out and admitted that I heard him call me cute and had brushed it off. Then I panicked that he'd feel awkward and said I don't know why he even said it and I told him I know he didn't mean it and it was probably a beer goggles comment. He replied with "I don't even know what to say..." Did I take it the wrong way? Was he actually showing interest by doing/saying all of this? I've never opened up to him because I'm afraid I'll read it wrong.

Is my guy friend showing interest and I'm taking it wrong?
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