Bitcoin Poised for Supply Squeeze as Miners and Investors Tighten Grip
Following repeated unsuccessful efforts to surpass the $110,000 resistance level in the past week, Bitcoin might now be ready for a significant breakout. Recent on-chain metrics indicate a quiet but persistent accumulation, with bullish indicators beginning to align strongly.
Key Takeaways:
Hide- BTC velocity dropped to 12.68 on July 8, its lowest level in three years, signaling diminished selling pressure.
- Miners accumulated 1,782 BTC in the past week, lifting the Miner Reserve to 1.81 million coins.
- A dense liquidity cluster around $110,473 marks a critical zone for leveraged positions and potential price catalysts.
- A successful breach above $110K could trigger a sharp rally; failure risks a pullback to $107,745 or even $104,709.
- On-chain supply metrics and liquidation heatmaps are proving essential tools for anticipating Bitcoin’s next major move.
Bitcoin Supply Contracts as Miners Accumulate and Velocity Falls to 3-Year Low
Bitcoin’s velocity has consistently decreased since the start of July, signaling a tightening in the coin’s circulating supply. On July 8, velocity—an on-chain indicator showing how frequently BTC is transacted—fell to a three-year low of 12.68.
A decline in asset velocity means fewer coins are actively moving, suggesting that holders prefer retention over trading or selling.
This behavior typically signals bullish sentiment, demonstrating investors’ strengthening confidence and shrinking the amount of liquid BTC available. Consequently, this can fuel upward price momentum if demand escalates.
Moreover, Bitcoin miners have increasingly held onto their coins over the past week. CryptoQuant data reveals miners added 1,782 BTC to their reserves within the last seven days, increasing total Miner Reserve holdings to 1.81 million BTC as of now.
This consistent rise in miner reserves since early July suggests miners are shifting their strategy toward accumulation rather than selling, aligning with market anticipation for Bitcoin to decisively break above $110,000.
Bitcoin Price Set to Jump as Traders Target $110,000 Liquidity Level
Analysis of Bitcoin’s liquidation heatmap highlights substantial liquidity clustered near the $110,473 mark.
These heatmaps illustrate where leveraged trading positions are vulnerable to liquidation, with areas of intense liquidity visually marked in brighter shades, typically yellow, signifying significant liquidation potential.
Such high-liquidity clusters usually attract price movements, drawing the market toward these regions to trigger liquidations and initiate new trading activity.
Thus, Bitcoin’s liquidity concentration around the $110,473 price suggests strong trader engagement in buying or covering short positions at this level, potentially paving the way for a sharp rise beyond $110,000 soon.
Nonetheless, a price surge is contingent upon stable or increasing demand. Should selling pressure intensify without new market entries, Bitcoin risks sliding back toward $107,745.
If purchasing momentum remains subdued, BTC might breach lower support levels, potentially descending further toward $104,709.
Final Words
With miner hoarding and three-year-low velocity squeezing available supply around the $110K liquidity zone, Bitcoin stands on the brink of a decisive move. A sustained demand surge could drive a breakout, but a failure to absorb this liquidity may send BTC back toward $107K–$104K. Keep a close eye on these on-chain metrics for the next signal.
