Bitcoin’s strengthening Stablecoin Supply Ratio (SSR) is flashing warning signs as the cryptocurrency approaches the key $119K resistance level. This metric, representing the ratio between Bitcoin’s market cap and stablecoin supply, indicates diminishing stablecoin liquidity available to purchase BTC – potentially creating headwinds for sustained price appreciation beyond current levels.
Technical analysis reveals $116K as crucial support; a decisive breakdown could precipitate deeper market corrections. Concurrently, Bitcoin’s MVRV Z-score reading of 2.83 points to elevated unrealized profits across the network, increasing the likelihood of holder profit-taking that could exert downward pressure on valuations.
While miner selling pressure appears subdued with the Miners’ Position Index (MPI) falling 32% to -1.06, this could reverse if prices stagnate. Market structure risks are further compounded by concentrated long liquidation clusters between $120K-$122K on Binance’s BTC/USDT pairs – a zone where cascading liquidations might trigger amplified volatility if tested.