Bitcoin News Today: Bitcoin's On-Chain Pressure Cooker: Liquidity Buildup Signals Impending Volatility

Bitcoin's on-chain structure is tightening as key liquidity clusters build around critical price levels, signaling potential for major volatility in the near term. The cryptocurrency has been trapped in a narrow range between $106,000 and $115,000 for two weeks, with buyers and sellers repeatedly thwarting breakout attempts. Analyst DaanCrypto highlighted this dynamic in a recent TradingView analysis, noting that the consolidation has led to a buildup of untriggered liquidation orders both above and below the range. This pattern, common in pre-breakout phases, suggests that a decisive move—either up or down—could be imminent once the price breaches these levels.

The current price action reflects a tug-of-war between short-term traders and institutional participants. At $106,000, a dense concentration of long liquidations acts as a critical support zone, while the $115,000 region holds thick short-side liquidity, the TradingView analysis shows. A break below $106,000 could trigger a cascade of selling, potentially pushing Bitcoin toward deeper levels, whereas a sustained move above $115,000 might spark a short squeeze, propelling the asset toward its all-time high of $126,210. Meanwhile, miner activity provides a mixed outlook. Recent data shows miner reserves stabilizing, easing sell pressure that had plagued the market earlier this year, according to a crypto.news report. This stabilization has improved miner profitability and reduced forced selling, creating a more favorable environment for a potential upward move.

However, the path to a breakout remains fraught with risks. A drop below $110,000 could reignite miner capitulation, exacerbating downward pressure amid macroeconomic uncertainties, the crypto.news report warns. CoinDesk Research notes that Bitcoin has consolidated above $111,000 as of October 25, with the 200-day moving average at $108,000 and the 100-day at $115,000 serving as key reference points. Market participants are closely watching whether on-chain activity and ETF flows can provide the catalyst needed to break out of this range.

Adding another layer of complexity is the relationship between Bitcoin and global M2 money supply. Analysts argue that Bitcoin's price often leads global liquidity peaks, acting as a forward-looking indicator of monetary expansion, as shown in a Bitcoin vs Global M2 chart. Recent data shows global liquidity accelerating sharply, with Bitcoin's recent rebound from a $80,000 low in April 2025 positioning it to potentially benefit from continued money-printing trends. This dynamic, combined with the tightening on-chain structure, suggests that Bitcoin could experience significant price swings in the coming months.