Key Takeaways
Bitcoin’s Stablecoin Supply Ratio surged, signaling lower capital inflows despite the price hovering near $119K. BTC must attract more inflows or risk losing its bullish momentum.
Bitcoin’s [BTC] market momentum has been rising despite a persistent increase in the Stablecoin Supply Ratio (SSR), which now hovers near multi-month highs.
This metric reflects the purchasing power of stablecoins relative to Bitcoin. And a rising SSR suggests weaker dry powder.
Although Bitcoin hovered around $119K at press time, the absence of inflowing stablecoin reserves indicates weaker liquidity, which could limit upside potential.
Can BTC bulls defend the ascending trendline above $116K?
Bitcoin continues to respect its ascending support line.
The price hovered between $118K–$119K, with the MACD still flashing mild bullish cues. Parabolic SAR dots also remained below the price, signaling the trend was still intact.
However, the $116.8K–$114.8K range now acts as a critical buffer. A decisive daily close below it would flip the structure and invite deeper downside.
Source: TradingView
Is the rising MVRV Ratio a warning sign for Bitcoin?
Bitcoin’s MVRV Z-score has climbed to 2.83, reflecting elevated unrealized profits among holders.
Historically, such levels tend to coincide with profit-taking and potential local tops. While not at extreme levels above 3.5, the current reading suggests growing incentive for selling.
This rise, paired with weak liquidity, creates a scenario where Bitcoin may face resistance in sustaining higher prices.
However, unless profit-taking intensifies, the market may still maintain upward pressure.
The next few days will be crucial in determining whether this rally evolves into a deeper correction or consolidates with renewed demand.
Are miners preparing for a sell-off?
The Miners’ Position Index (MPI) has dropped sharply to -1.06, marking a 32% decrease over the past 24 hours. That’s a clear sign that miners aren’t rushing to sell.
When MPI dips this low, it usually signals either high conviction or market hesitation. It also removes immediate overhead pressure, though it can flip quickly if prices stall.
Will THESE liquidation zones trigger sharp volatility?
The Binance BTC/USDT Liquidation Map revealed concentrated long liquidation clusters between $120K and $122K.
As Bitcoin inches closer to these zones, the risk of forced liquidations grows—potentially amplifying volatility.
In fact, the buildup of high-leverage long positions at these levels means a failure to break through decisively could trigger cascading sell-offs.
Conversely, a strong breakout above these clusters might liquidate shorts and propel BTC higher.
However, considering the weak stablecoin backing and profit-taking risk, traders should brace for increased price swings as BTC navigates this liquidity minefield.
Can Bitcoin extend its gains?
BTC’s uptrend is technically alive, but sentiment and liquidity don’t fully back it. Bulls must summon more capital—or risk a pullback near $120K–$122K.
Miners aren’t selling, which helps. But with stablecoin support waning and profit incentives rising, this rally walks a tightrope.
