Key Takeaways
Bitcoin defends $110K support as miners ease flows and buyers absorb supply. Besides, Stock-to-Flow ratio jumps 11%, reinforcing scarcity alongside stable funding rates.
Since September began, Bitcoin [BTC] has seen miner flows to Binance rise sharply, with more than 56,000 BTC deposited, raising critical questions on selling pressure.
Despite recent volatility, on-chain flows have cooled, indicating that many miners are now choosing to hold or sell over-the-counter rather than through exchanges.
This shift in behavior has helped limit downside risks, as buyers continue to absorb available supply.
However, the market is approaching a critical juncture: if reduced flows persist, they could help sustain price strength—but a sudden resurgence in selling could threaten short-term stability.
Can Bitcoin ignite a rally to $140K?
At press time, Bitcoin traded around $115K after bouncing from a crucial demand zone near $110K, signaling firm support. The RSI indicator sat at 56, showing momentum remains healthy without being overextended.
The projected path suggests a potential breakout toward $123K, with further gains eyeing $140K if bullish demand persists.
However, if Bitcoin fails to reclaim $123K decisively, the market could face renewed consolidation.
Therefore, buyers must defend the $110K–$112K zone strongly, as losing it may invite deeper retracements before another attempt higher.
Source: TradingView
Scarcity metrics strengthen as Stock-to-Flow ratio rises 11%
The Stock-to-Flow (S2F) ratio has surged over 11% to reach 708K, as of writing, reinforcing Bitcoin’s scarcity narrative.
This increase suggests that circulating supply relative to new issuance continues tightening, which historically supports long-term valuation.
Furthermore, previous spikes in this metric have coincided with strong recovery phases, signaling renewed investor confidence.
Therefore, a rising S2F ratio complements reduced miner flows by amplifying supply absorption.
If this scarcity-driven signal aligns with supportive price structure, Bitcoin could see renewed demand acceleration. However, failure to sustain scarcity momentum could weaken bullish conviction.
Are Funding Rates cooling?
At the time of writing, BTC’s OI-Weighted Funding rate held positive at 0.0059%, indicating that long positions still dominate Futures markets.
However, rates have gradually cooled compared to previous peaks, suggesting some unwinding of aggressive leverage.
This moderation is crucial because overheated funding rates often precede sharp corrections. Therefore, a healthier funding environment now provides a balanced backdrop for spot-driven accumulation.
However, if funding turns sharply negative, bearish speculation could intensify. Still, the current cooling trend reinforces stability, allowing spot demand to exert greater influence over market direction in the near term.
Conclusively, Bitcoin’s path forward depends on whether miners sustain reduced flows while scarcity metrics continue strengthening.
If buyers defend support and funding remains balanced, Bitcoin could break above $123K and target $140K.
