Bitcoin News Today: Bitcoin Hovers Near $119,000 as Stablecoin Inflows Wane and MVRV Z-Score Climbs to 2.83

Bitcoin’s recent price action near $119,000 has ignited debates over its ability to sustain an upward trajectory amid conflicting market signals. The Stablecoin Supply Ratio (SSR), which gauges the purchasing power of stablecoins relative to Bitcoin, has surged to multi-month highs despite BTC’s proximity to $119,000 [1]. This metric suggests declining capital inflows into Bitcoin, a critical factor for maintaining bullish momentum. Analysts caution that without fresh liquidity, Bitcoin’s potential to breach $122,000 remains constrained, as stablecoin support weakens.

The MVRV Z-score, a measure of unrealized gains, has climbed to 2.83, reflecting heightened profit-taking incentives among holders [2]. Historically, levels above 2.0 correlate with increased selling pressure as investors lock in gains. Combined with the SSR’s rise, this creates a fragile environment where Bitcoin’s price could face resistance despite technical indicators suggesting a lingering bullish trend. The MACD and Parabolic SAR remain positive, with Bitcoin hovering near $118,000–$119,000 and respecting an ascending support line above $116,800 [5]. However, a breakdown below $114,800 could trigger a structural shift, inviting further declines.

Miners’ Position Index (MPI) data adds nuance to the narrative. The MPI plummeted to -1.06, a 32% drop in 24 hours, signaling reduced selling pressure from miners [3]. This temporarily alleviates overhead concerns but introduces volatility risks if prices stall. Meanwhile, Binance’s BTC/USDT Liquidation Map reveals concentrated long positions between $120,000 and $122,000 [4]. A failure to decisively break above this range could trigger cascading liquidations, amplifying short-term volatility. Conversely, a strong breakout might liquidate short positions and propel Bitcoin higher, though weak stablecoin backing and profit-taking risks temper optimism.

The market’s reliance on new capital inflows underscores Bitcoin’s precarious position. Miners’ current reluctance to sell offers short-term stability, but waning stablecoin liquidity and elevated MVRV levels highlight structural vulnerabilities. Traders must monitor the coming days for signs of consolidation or deeper corrections, as the balance between bullish momentum and profit-taking pressures defines Bitcoin’s next move. The path to $122,000 hinges on attracting fresh capital to offset dwindling liquidity, a challenge that could determine whether the rally extends or reverses.

[1] https://ambcrypto.com/mapping-bitcoins-climb-to-122k-and-why-stablecoins-can-spoil-the-party/

[2] https://ambcrypto.com/mapping-bitcoins-climb-to-122k-and-why-stablecoins-can-spoil-the-party/

[3] https://ambcrypto.com/mapping-bitcoins-climb-to-122k-and-why-stablecoins-can-spoil-the-party/

[4] https://ambcrypto.com/mapping-bitcoins-climb-to-122k-and-why-stablecoins-can-spoil-the-party/

[5] https://ambcrypto.com/mapping-bitcoins-climb-to-122k-and-why-stablecoins-can-spoil-the-party/