Bitcoin Gears Up for a Supply Squeeze as Miners and HODLers Clamp Down
Bitcoin's low supply environment, rising miner reserves, and a concentration of liquidity near $110K point to a potential breakout, though risks remain.
After several failed attempts to breach the $110,000 price mark over the past week, leading coin Bitcoin may be set for a decisive breakout.
On-chain data shows coin accumulation is quietly intensifying, and the bullish signals are beginning to align.
Bitcoin Supply Tightens as Miners Hold and Velocity Hits 3-Year Low
BTC’s Velocity has slowly declined since July started, indicating that the coin is entering a low-supply environment. On July 8, the on-chain metric, which measures how frequently BTC changes hands over a given period, closed at a three-year low of 12.68.
Bitcoin Velocity. Source:
CryptoQuant
When an asset’s velocity falls, fewer coins are moving through the network, indicating that holders are choosing to sit tight rather than trade or sell.
This is a bullish signal, as it reflects growing conviction among investors and a gradual tightening of liquid supply, which can drive prices higher if demand increases.
In addition, Bitcoin’s Miner Reserve has climbed steadily over the past week. Data from CryptoQuant shows that miners have added 1,782 BTC to their holdings in the last seven days, pushing the total Miner Reserve to 1.81 million coins at press time.
Bitcoin Miner Reserve. Source:
CryptoQuant
The rise in BTC’s Miner Reserve since the beginning of July suggests a shift in miner behavior toward holding rather than selling as the market presses harder for a climb rally above $110,000.
Bitcoin Could Surge as Traders Zero In on $110,000 Liquidity Zone
An assessment of BTC’s liquidation heatmap shows a notable concentration of liquidity around the $110,473 price zone.
BTC Liquidation Heatmap. Source:
Coinglass
Liquidation heatmaps identify price levels where clusters of leveraged positions are likely to be liquidated. These maps highlight areas of high liquidity, often color-coded to show intensity, with brighter zones (yellow) representing larger liquidation potential.
Usually, these cluster zones act as magnets for price action, as the market tends to move toward these areas to trigger liquidations and open fresh positions.
Therefore, for BTC, the cluster of a high volume of liquidity at the $110,473 price level indicates a strong trader interest in buying or closing short positions at that price. It creates room for a potential surge past $110,000 in the near term.
However, this will not happen if selling pressure gains momentum and new demand fails to enter the BTC market. In this case, the coin’s price could fall toward $107,745.
BTC Price Analysis. Source:
TradingView
BTC’s price could breach support and slide toward $104,709 if buying pressure remains weak.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
AI investment enters the "Trough of Disillusionment", the next 18 months will be a life-or-death test!
Goldman Sachs believes that the AI investment cycle is currently in the "trough of disillusionment," but this is not the first time. The core contradiction lies in the fact that the business models of new cloud computing providers are highly dependent on end-user returns from AI spending, while currently "there are basically zero companies that can attribute profits to AI." Social Capital founder Palihapitiya has clearly defined an 18-month key window, during which the market will decide which AI business models are sustainable and which are not.
Anthropic's Core Concern: Revenue Can Be Withdrawn at Any Time, but Computing Power Costs Are Locked in for up to 20 Years
Zheshang Securities believes that Anthropic's revenue is mainly based on usage-based billing, with remaining performance obligations covering only about 5.1 months of annualized revenue, while compute power costs are already locked in with $895.4 billion in irrevocable commitments, some extending as far as 2045. Revenues can be reduced at any time, but costs are non-exitable, creating a highly asymmetric maturity gap between the two—this is the company's real core constraint.
Triple Pressure from the Federal Reserve, Treasury, and Congress; Goldman Sachs: Liquidity Crisis May Occur in 2027
Goldman Sachs warns that the reserve ratio of bank assets has dropped to around 11%, only slightly above the crisis trough of 2019. In the second half of 2027, a deadlock in debt ceiling negotiations will force the Treasury to rebuild the TGA, triggering a "perfect storm" of a sharp drop in reserves and a surge in T-bill supply; combined with stalled money market fund buying, this will create a huge liquidity black hole. The Federal Reserve could be forced into the awkward position of lowering interest rates and launching large-scale bond purchases to rescue the market.
Crypto prices
More
