Key Takeaways
Bitcoin’s Stablecoin Provide Ratio surged, signaling decrease capital inflows regardless of the worth hovering close to $119K. BTC should entice extra inflows or danger dropping its bullish momentum.
Bitcoin’s [BTC] market momentum has been rising regardless of a persistent enhance within the Stablecoin Provide Ratio (SSR), which now hovers close to multi-month highs.
This metric displays the buying energy of stablecoins relative to Bitcoin. And a rising SSR suggests weaker dry powder.
Though Bitcoin hovered round $119K at press time, the absence of inflowing stablecoin reserves signifies weaker liquidity, which may restrict upside potential.
Supply: CryptoQuant
Can BTC bulls defend the ascending trendline above $116K?
Bitcoin continues to respect its ascending assist line.
The value hovered between $118K–$119K, with the MACD nonetheless flashing gentle bullish cues. Parabolic SAR dots additionally remained beneath the worth, signaling the development was nonetheless intact.
Nevertheless, the $116.8K–$114.8K vary now acts as a essential buffer. A decisive every day shut beneath it will flip the construction and invite deeper draw back.
Supply: TradingView
Is the rising MVRV Ratio a warning signal for Bitcoin?
Bitcoin’s MVRV Z-score has climbed to 2.83, reflecting elevated unrealized income amongst holders.
Traditionally, such ranges are likely to coincide with profit-taking and potential native tops. Whereas not at excessive ranges above 3.5, the present studying suggests rising incentive for promoting.
This rise, paired with weak liquidity, creates a state of affairs the place Bitcoin could face resistance in sustaining increased costs.
Nevertheless, until profit-taking intensifies, the market should still keep upward stress.
The subsequent few days might be essential in figuring out whether or not this rally evolves right into a deeper correction or consolidates with renewed demand.
Supply: Santiment
Are miners getting ready for a sell-off?
The Miners’ Place Index (MPI) has dropped sharply to -1.06, marking a 32% lower over the previous 24 hours. That’s a transparent signal that miners aren’t speeding to promote.
When MPI dips this low, it normally indicators both excessive conviction or market hesitation. It additionally removes rapid overhead stress, although it might flip rapidly if costs stall.
Supply: CryptoQuant
Will THESE liquidation zones set off sharp volatility?
The Binance BTC/USDT Liquidation Map revealed concentrated lengthy liquidation clusters between $120K and $122K.
As Bitcoin inches nearer to those zones, the chance of compelled liquidations grows—doubtlessly amplifying volatility.
In truth, the buildup of high-leverage lengthy positions at these ranges means a failure to interrupt by way of decisively may set off cascading sell-offs.
Conversely, a powerful breakout above these clusters may liquidate shorts and propel BTC increased.
Nevertheless, contemplating the weak stablecoin backing and profit-taking danger, merchants ought to brace for elevated worth swings as BTC navigates this liquidity minefield.
Supply: CoinGlass
Can Bitcoin lengthen its positive aspects?
BTC’s uptrend is technically alive, however sentiment and liquidity don’t absolutely again it. Bulls should summon extra capital—or danger a pullback close to $120K–$122K.
Miners aren’t promoting, which helps. However with stablecoin assist waning and revenue incentives rising, this rally walks a tightrope.
