Is Bitcoin Ready to Soar or Just Stuck in the Mud? 🚀💰

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Key Takeaways

  • The current cycle low of Bitcoin inflows to Binance may be a bright spark for long-term dreamers. Still, all signs point to a wild ride for those foolhardy enough to chase short-term gains.

On that fateful day, July 9, Bitcoin [BTC] danced tantalizingly close to its all-time high—just $60 shy of a glorious $111,970. It was a spectacle to behold as $229.28 million worth of positions went belly up in a mere 24 hours. Talk about a liquidation party! 🎉

Out of that grand total, only $12.8 million were long positions. One might say that these poor souls didn’t read the room—clearly, the short squeeze was in full swing! Picture this: a hefty $7.8 million in shorts vaporized in less time than it takes to say, “Hodl!”

In the grand tomes of CryptoQuant, our intrepid analyst Darkfost noted a rather peculiar phenomenon: Bitcoin inflows to the colossal Binance exchange had plummeted to abyssal lows, lower than a snake’s belly in a wagon rut, even as prices gallivanted upward. Can you believe it?

The live charts, ever so cheerful, revealed a monthly inflow average of 5.39k BTC and a daily average lounging at a lazy 3.19k BTC. Inflows typically signify the intent to sell, so this curious dip suggested holders were hunkering down, putting their faith in Bitcoin like a fisherman waiting for the perfect catch.

Yet, this short squeeze managed to suck a hefty chunk of liquidity out into the ether, bouncing BTC back to the $110.8k mark. Are we seeing a liquidity grab? You bet your bottom dollar we are—what next, a winning lottery ticket?!

Explosive rally or slow, choppy grind ahead?

The 1-month liquidation heatmap unveiled the liquidity at $110k that was recently gobbled up like a Thanksgiving turkey. Oh, and lo and behold, there’s another magnetic zone lurking at $112.6k, just waiting to be revisited.

Over the past fortnight, Bitcoin strutted sideways, building up liquidity like an overstuffed burrito, ready to roll in any direction!

But wait! There was a sinister cloud lurking on the horizon for our brave traders.

Since April, the estimated leverage ratio had been creeping higher, culminating in a sizeable jump as BTC flirted with the $108k mark. It seems folks are ready to throw caution to the wind in the derivatives market, perhaps with less regard than one would have for a game of darts in a pub after closing hour!

The 14-day moving average for stablecoin netflows told a sobering tale, with stablecoins trickling out of exchanges since June 30. Less stablecoins in circulation could mean less buying power, and who wants to be the person at the party with empty pockets?

The low BTC inflows mentioned the sellers’ reluctance, while the dance of the stablecoin suggested a waning buying power. Throw in some open interest and liquidations data, and you’ve got a market that’s ready to ricochet between liquidity pockets, waving the flag for volatility!

So, traders should tread carefully, lest they find themselves caught in a tempest, while spot holders need only keep their fingers crossed and their patience intact.

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2025-07-11 06:19