Bitcoin Surges 10.8% to $109,792 as New Addresses Jump 8.17%

Bitcoin's recent price surge, closing at $109,792 on the 2nd of July, marked its highest point in 20 days, triggering a wave of FOMO (Fear Of Missing Out) among investors. This price movement was accompanied by a significant increase in new addresses interacting with the network, with 25,812 new addresses appearing in a single day, an 8.17% day-over-day jump and a fresh monthly high. This momentum could serve as a key catalyst for further price movements.

As Bitcoin approaches a major supply overhang, opportunistic shorts are beginning to circle. If investor conviction holds, it could pave the way for an even deeper bear trap, potentially launching Bitcoin straight into the $115k liquidation zone. Bitcoin’s price action is starting to feel familiar, with the cryptocurrency making its second run at the $111k level in just over a month, eyeing a potential breakout into price discovery. The first test saw Bitcoin rejected hard at $110,350, triggering a swift 10.8% drawdown over two weeks. Now, with 67% of Binance accounts skewed short, it appears late-positioned bears are betting on a similar outcome.

Adding to the caution, Open Interest is now approaching $78 billion, the same elevated level that preceded the last cascade of liquidations when a $10 billion liquidity flush hit the market, intensifying Bitcoin’s 10.8% slide. Meanwhile, the Taker Buy/Sell Ratio has dropped 3.71%, a clear sign that aggressive buying is cooling off just as Bitcoin retests historical resistance. With on-chain signals mirroring the setup from last month, shorts appear to be positioning with precision, tactically loading up for another leg down.

Historically, it takes a combination of FOMO-driven inflows and long-term conviction to crack major resistance in Bitcoin’s price action. In fact, that mix might just be forming again. On-chain activity shows an 8% spike in new address creation, alongside $407 million in BTC ETF inflows and a rising share of supply held by STHs, pointing to fresh capital and renewed optimism entering the market. But beneath the surface, the foundation looks even stronger. Long-term holders (investors who’ve held BTC for over 155 days) now own a record 14.7 million coins. What’s striking is that most of the Bitcoin bought during the $100k breakout hasn’t moved. This lack of distribution at local highs is compressing available supply into stronger hands, while retail-driven capital is beginning to rotate back in. The setup points to a classic liquidity squeeze.

That $115K level? It’s sitting on top of nearly $6 billion in short exposure. If current dynamics hold, bulls could use this liquidity cluster as fuel for the next breakout leg. The recent price surge and the accompanying on-chain data suggest that Bitcoin could be setting up for another sharp rejection or a breakout-fueled short squeeze. The key will be whether the current momentum and investor conviction can hold, potentially paving the way for a move towards the $115k liquidation zone. The upcoming price action will be crucial in determining whether Bitcoin can break through resistance and continue its upward trajectory or face another significant drawdown.