Key Highlights
Bitcoin’s Stablecoin Supply Ratio has surged, indicating a decrease in capital inflows despite the price hovering around $119K. It is crucial for BTC to attract more inflows to maintain its bullish momentum.
Bitcoin’s market momentum has been increasing even as the Stablecoin Supply Ratio (SSR) reaches multi-month highs. The SSR reflects the purchasing power of stablecoins compared to Bitcoin, with a rising SSR suggesting reduced dry powder.
Although Bitcoin is currently trading around $119K, the lack of incoming stablecoin reserves points to decreased liquidity, potentially limiting upward potential.
Source: CryptoQuant
Can BTC bulls defend the ascending trendline above $116K?
Bitcoin continues to respect its ascending support line, with the price ranging between $118K–$119K. The MACD shows mild bullish signals, and Parabolic SAR dots are below the price, indicating the trend remains intact.
However, the $116.8K–$114.8K range is a critical support level. A decisive daily close below this range could lead to a structure flip and potentially trigger a deeper downside move.
Source: TradingView
Is the rising MVRV Ratio a warning sign for Bitcoin?
Bitcoin’s MVRV Z-score has climbed to 2.83, indicating high unrealized profits among holders. Historically, such levels often coincide with profit-taking and potential local tops, suggesting a growing incentive for selling.
This increase, coupled with weak liquidity, creates a scenario where Bitcoin may struggle to sustain higher prices. However, unless profit-taking intensifies, the market could still experience upward pressure.
Source: Santiment
Are miners preparing for a sell-off?
The Miners’ Position Index (MPI) has sharply dropped to -1.06, indicating a 32% decrease over the past 24 hours. This suggests that miners are not eager to sell, removing immediate selling pressure.
When the MPI reaches such low levels, it typically signifies high conviction or market hesitation. While this benefits the market in the short term, it could quickly change if prices stagnate.
Source: CryptoQuant
Will THESE liquidation zones trigger sharp volatility?
The Binance BTC/USDT Liquidation Map shows concentrated long liquidation clusters between $120K and $122K. As Bitcoin approaches these levels, the risk of forced liquidations increases, potentially leading to heightened volatility.
High-leverage long positions at these zones mean a failure to break through decisively could trigger cascading sell-offs. On the flip side, a strong breakout could liquidate shorts and push BTC higher.
Considering the weak stablecoin support and profit-taking risk, traders should be prepared for increased price swings as Bitcoin navigates this liquidity minefield.
Source: CoinGlass
Can Bitcoin extend its gains?
Bitcoin’s uptrend remains intact from a technical perspective, but sentiment and liquidity do not fully support it. To avoid a potential pullback around $120K–$122K, bulls must attract more capital.
With miners holding back on selling but facing challenges in stablecoin support and profit incentives, this rally is walking a fine line.
The sentence is already clear and does not need to be rewritten.