After several failed attempts to break through the $110,000 price range last week, the major cryptocurrency Bitcoin may be preparing for a decisive breakthrough.
According to on-chain data, coin accumulation is quietly strengthening, and bullish signals are beginning to align.
Bitcoin Supply Reduction... Miner Holdings, Circulation Speed at 3-Year Low
BTC's velocity has been slowly decreasing since the beginning of July, indicating that the coin is entering a low supply environment. On July 8th, the on-chain indicator measuring how frequently BTC is traded during a given period closed at 12.68, its lowest point in 3 years.
A decrease in asset velocity indicates fewer coins moving through the network, suggesting that holders are choosing to hold rather than trade or sell.
This reflects growing confidence among investors and is a bullish signal showing that liquid supply is gradually decreasing. Increased demand could drive up prices.
Additionally, Bitcoin's miner reserves have been steadily increasing over the past week. According to CryptoQuant's data, miners added 1,782 BTC to their reserves over the past 7 days, increasing the total miner reserves to 1.81 million coins at the time of reporting.
The increasing trend of BTC miner reserves since early July suggests that miners are shifting towards holding rather than selling as the market faces pressure to rise above $110,000. The market pressure to rise above $110,000 is intensifying.
Bitcoin Focuses on $110,000 Liquidity Zone... Potential for Rapid Surge
According to BTC's liquidation heatmap evaluation, liquidity is concentrated around the $110,473 price range.
The liquidation heatmap identifies price levels with a high probability of leverage positions being liquidated. These maps often highlight high liquidity areas distinguished by color to show intensity, with brighter areas (yellow) indicating a higher likelihood of liquidation.
Generally, these clustered areas act like magnets for price movements, with the market moving to these areas to induce liquidations and open new positions.
Therefore, for BTC, the high liquidity cluster at the $110,473 price level indicates strong trader interest in buying or liquidating short positions at that price. This creates room for a potential rapid surge above $110,000 in the near term.
However, if selling pressure intensifies and new demand does not enter the BTC market, the coin's price could drop to $107,745.
BTC's price could break through the support line and fall to $104,709 if buying pressure remains weak.
