Bitcoin just hit a new peak of 118,000 USD with strong trading speed, but complex indicators signal short-term volatility risks.
Strong trading volume accompanied by miners' selling activities and Short position liquidation could create adjustment pressure, despite the underlying market demand remaining good.
- Bitcoin surpasses 118,000 USD with a Net Taker Volume explosion over 200 million USD on Binance.
- Miners' MPI index surges over 150%, signaling miners may be about to sell.
- High Short liquidation cluster around the 118,000 USD price zone could trigger a new price surge or significant volatility.
How Did Bitcoin Reach a New Peak?
CryptoQuant CEO confirmed Bitcoin reached a record high of 118,000 USD with Binance's Net Taker Volume exceeding 200 million USD, the highest since February 2025. This indicates extremely strong buying power and active market participation by investors.
Previously, similar volume explosion phases typically preceded breakthrough price increases, though sometimes they also warned of an imminent local peak.
What Does the Surging MPI Index Mean?
MPI – Miners' Position Index increased to 153.17% reaching 2.13, according to CryptoQuant data from July 2025, showing cryptocurrency miners pushing to market far beyond the annual average. Market experts warn this is typically a zone of high selling pressure that could lead to an adjustment phase if miners collectively dump coins.
A leading analyst stated: "High MPI is a cautionary signal, as miners tend to take profits after a strong price surge."
(CryptoQuant, 7/2025)
Hold Bitcoin or Sell? How Does This Affect the Trend?
CoinGlass data on 12-7 shows exchange net outflow not too strong, at negative 9.22 million USD, indicating investors remain cautious about additional capital commitment. This can be interpreted as reflecting moderate confidence or uncertainty about maintaining the upward trend.
What Does the Declining NVT Ratio Signal?
The Network Value to Transaction (NVT) index decreased by 31.07% to 19.61 – a positive sign, demonstrating increasing on-chain liquidity and transactions relative to market value. This is a supporting indicator for trend sustainability, emphasized by technical analysis experts.
Could High Short Position Liquidation Open a New Breakthrough?
The Liquidation Map shows a large Short position cluster with leverage from 50x to 100x concentrated above 118,000 USD, according to CoinGlass data. Bitcoin is currently around 117,809 USD, and just a slight increase could trigger multiple mandatory liquidations, potentially driving a fierce price surge but also involving significant risks.
"Short squeeze could create very strong upward momentum if Bitcoin overcomes important resistance levels," a Deribit analyst noted, (Deribit Insights, 2025).
Can Bitcoin Maintain Its Surge or Will It Face Profit-Taking Pressure?
Fundamental factors like strong demand in the spot market and increased actual on-chain transactions support Bitcoin's continued upward trend. However, signs of miners' selling and pressure from high-leverage Short positions warn of unpredictable short-term volatility. Investors should remain cautious and closely monitor these indicators to avoid unexpected risks.
Frequently Asked Questions
- What Primary Factor Drove Bitcoin to a New Peak of 118,000 USD?
The primary factor was the surge in Net Taker Volume on Binance, indicating large funds are entering the market powerfully and decisively. - What Does a High Miners' Position Index (MPI) Indicate?
High MPI suggests miners tend to increase coin selling, potentially creating price adjustment pressure. - How Do Short Position Liquidations Affect the Trend?
High-leverage Short liquidation clusters could create strong upward momentum if Bitcoin breaks the 118,000 USD resistance. - What Role Does the Declining NVT Ratio Play?
Declining NVT proves strong on-chain transaction activity, supporting a more sustainable price increase trend.
