Key Takeaways
- Bitcoin surged past $118K, driven by bullish sentiment, rising miner activity, and retail engagement. Despite overbought signals and profit-taking risks, long-term scarcity and address growth support continued upside momentum.
Bitcoin [BTC] has extended its rally, gaining over 6% and breaking past $118K, fueled by bullish sentiment and a sharp uptick in miner activity.
Notably, the Miner to Exchange Flow rose significantly for the first time since the 23rd of May, suggesting that miners are beginning to offload holdings at these higher price levels.
The Miners’ Position Index (MPI) has also flipped positive, indicating that miners view the current market as profitable enough to sell.
This behavior could inject short-term sell pressure into the market, potentially increasing volatility if large-scale offloads continue in the coming days.
Source: CryptoQuant
Is Bitcoin overheating after clearing its multi-week resistance?
Bitcoin’s price has surged above the critical resistance zone of $112K–$114K, turning it into support for the first time.
This breakout is reinforced by the Parabolic SAR, which continued to trail below the candles, at press time, confirming upward momentum.
However, the Stochastic RSI entered overbought territory with a peak value of 100, suggesting that the current trend may be overstretched in the short term.
Thus, while technicals remain bullish, the market could experience a pullback or consolidation phase if buyers fail to effectively defend the new support range.
Source: TradingView
Could Bitcoin’s MVRV ratio be flashing a caution signal?
The MVRV ratio climbed to 2.39, up 7.03% in the last 24 hours, historically signaling profit-taking levels.
This metric, which compares market value to realized value, implies that a majority of holders are sitting on substantial gains.
When MVRV exceeds 2.0, past patterns show a growing risk of local tops forming due to distribution by profitable investors.
Therefore, despite strong price action, Bitcoin may be vulnerable to short-term corrections if these holders begin to offload amid elevated prices and miner exits.
Source: CryptoQuant
Is Bitcoin’s scarcity narrative strengthening the long-term outlook?
The Stock-to-Flow Ratio jumped by 125.01%, reaching 1.5912 million, signaling heightened scarcity in the market.
This metric, which evaluates the relationship between circulating and newly issued coins, has traditionally aligned with long-term bull cycles.
As issuance slows and demand holds steady or rises, scarcity increases, theoretically supporting a price rise.
This surge could reassure long-term investors, especially amid growing uncertainty in traditional assets.
Source: CryptoQuant
Does rising address activity signal stronger retail confidence?
Network participation metrics show a sharp rise across all address categories.
New addresses increased by 9.51%, active addresses climbed by 6.29%, and zero balance addresses rose by 13.19% over the past seven days.
These trends suggest that retail and possibly new entrants are engaging with Bitcoin at a higher rate.
Historically, such spikes in address activity correlate with renewed investor confidence and expanding user adoption.
Therefore, this surge may provide a foundational layer of support for Bitcoin’s ongoing uptrend, even amid potential miner-driven volatility.
Source: IntoTheBlock
Can Bitcoin maintain its momentum, or will sellers take the lead?
Bitcoin’s momentum remained intact, supported by strong address growth and long-term scarcity metrics.
However, elevated MVRV levels and rising miner inflows suggest that some profit-taking is already underway.
If miner selling accelerates and overbought conditions trigger more exits, short-term corrections could follow.
Still, unless retail demand fades or major support zones break, sellers are unlikely to fully reverse the trend. Therefore, while Bitcoin may face near-term turbulence, bulls remain in control, at least for now.