Bitcoin just set a new peak of 118,000 USD with strong trading momentum, but complex indicators signal short-term volatility risks.
Strong trading volume along with miners' selling activity and short position liquidations may create adjustment pressure, although the underlying market demand remains strong.
MAIN CONTENT
Bitcoin surpassed the 118,000 USD mark with a surge in Net Taker Volume of over 200 million USD on Binance.
The Miners’ Position Index (MPI) surged above 150%, indicating that miners may be about to sell.
A high cluster of short liquidations at the 118,000 USD price level could trigger a new upward wave or strong volatility.
How did Bitcoin reach a new peak?
The CEO of CryptoQuant confirmed that Bitcoin reached a record high of 118,000 USD alongside Binance's Net Taker Volume exceeding 200 million USD, the highest since February 2025. This indicates extremely strong buying power and active market participation from investors.
Previously, similar surges in buying volume often preceded breakout price increases; however, sometimes this also serves as a warning sign of an impending local peak.
What does a surge in the MPI mean?
MPI – Miners’ Position Index rose to 153.17% to 2.13, according to CryptoQuant data for July 2025, reflecting the amount of cryptocurrency miners are selling to the market far exceeding the one-year average. Market experts warn that this is often a region where high selling pressure appears, which could lead to a correction phase if miners collectively sell off coins.
A leading analyst stated: "A high MPI is a cautious signal, as miners tend to take profits after a strong price increase."
(CryptoQuant, 7/2025)
Hold Bitcoin or sell? How does this affect the trend?
CoinGlass data on July 12 indicates a net outflow from exchanges of only -9.22 million USD, showing that investors are still quite cautious about committing additional capital. This can be understood as reflecting moderate confidence or uncertainty about maintaining the upward trend.
What does the decreasing NVT ratio signal for the market?
The Network Value to Transaction (NVT) index decreased by 31.07% to 19.61 – a positive sign, demonstrating that liquidity and on-chain transactions are accelerating in accordance with market value. This is an indicator supporting the sustainability of the upward trend, emphasized by technical analysts as a reinforcing factor.
Could high short position liquidations open up a new breakout?
The Liquidation Map shows that clusters of short positions with leverage from 50x to 100x are heavily concentrated above the 118,000 USD level, according to CoinGlass data. Bitcoin's price is around 117,809 USD, needing only a slight increase to trigger a wave of forced liquidations, driving a fierce price surge but also posing significant risks.
"A short squeeze could create very strong upward momentum if Bitcoin surpasses key resistance levels," said Deribit analysts (Deribit Insights, 2025).
Can Bitcoin maintain its upward momentum or will it face profit-taking pressure?
Fundamental factors such as strong demand in the spot market alongside an increase in actual on-chain transactions support Bitcoin's continued upward trend. However, signs of selling from miners and pressure from high leverage short positions warn of unpredictable volatility in the short term. Investors need to be cautious and closely monitor these indicators to avoid unexpected risks.
Frequently Asked Questions
What are the main factors contributing to Bitcoin reaching a new peak of 118,000 USD?
The main factor is the surge in Net Taker Volume on Binance, indicating that large capital is participating in the market strongly and decisively.What does a high Miners’ Position Index (MPI) signal?
A high MPI indicates that miners tend to increase the amount of coins sold, posing potential price adjustment pressure.How does liquidating short positions affect the trend?
A high leverage short liquidation cluster could create strong upward momentum if Bitcoin breaks through the 118,000 USD resistance.What role does a decreasing NVT ratio play?
A decreasing NVT indicates strong on-chain trading activity, supporting a more sustainable price increase.
Source: https://tintucbitcoin.com/bitcoin-3-yeu-to-quyet-dinh-tuong-lai/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
