Bitcoin continues to rise as stablecoin reserves on exchanges sharply decrease, indicating strong buying power from investors and long-term confidence.
Meanwhile, high NVT and NVM indices along with the cooling of trading volume warn of short-term depletion risks, creating considerations for investors to monitor closely.
MAIN CONTENT
Stablecoin reserves on exchanges continue to decline, signaling strong demand for Bitcoin.
The NVT and NVM indices are high, indicating that Bitcoin may be overvalued.
Miners reducing sales confirm an upward trend but also warn of risks if the upward momentum weakens.
What is driving Bitcoin's price increase?
Bitcoin continues to rise amidst decreasing stablecoin reserves on exchanges to record lows, reflecting investor confidence and strong buying power from the spot market. BTC is trading around $117,913, with technical support at the $111,591 level according to the Parabolic SAR indicator.
The decline in the stablecoin ratio on exchanges indicates that stablecoin liquidity is being used to accumulate Bitcoin, creating significant buying pressure. This is a positive sign from the perspective of CryptoQuant experts, but without new capital inflows, the potential for further increases will be limited.
"The decline in stablecoin reserves to the lowest level in months shows that financial resources on exchanges are being directly transferred into Bitcoin, reflecting significant confidence from investors."
James Lee, Market Analysis Director – CryptoQuant, 07/14/2025
Is Bitcoin rising too quickly?
According to the market trading volume bubble map, trading activity is showing signs of stagnation, indicating diminishing trading strength despite rising prices. This reflects a lack of consensus among the majority of investors, increasing the likelihood that the upward trend may soon deplete.
If trading volume does not recover, Bitcoin's upward trend may face difficulties and enter a sideways or slightly corrective phase in the short term.
Source: CryptoQuant
Is Bitcoin at a short-term peak?
The NVT (Network Value to Transactions) and NVM (Network Value to Miner revenue) indices have surged by 88.21% and 25.55% respectively, showing the disparity between market value and trading volume. This is a reliable warning that Bitcoin may be overvalued.
History shows that periods of rapid NVT and NVM increases often lead to price corrections or consolidations in the short term. Investors should be aware of this discrepancy to mitigate risks.
Source: CryptoQuant
Why are miners reducing sales when BTC prices peak?
The Miner Position Index (MPI) has decreased by over 142%, reaching -0.70, indicating that miners have significantly reduced their Bitcoin sales, implying expectations for continued price increases. This is different from previous bull markets where miners often took advantage of high prices to liquidate heavily.
Miners retaining mined coins enhance confidence in a long-term upward trend but also create pressure if the market unexpectedly reverses.
"The reduction in selling pressure from miners signals a positive sign that they expect the market to continue growing and are not in a hurry to take profits in the short term."
Maria Gonzales, Blockchain Analyst, 07/13/2025
Source: CryptoQuant
Will Bitcoin maintain its trend if the upward momentum weakens?
Directional indicators like +DI at 33.12 show that the buying side still has the upper hand, while -DI at 11.73 indicates weak selling. However, the ADX index at 19.70 reflects weak trend strength, not supporting sustainable upward momentum.
The Parabolic SAR support zone around $111,600 can still protect the upward trend, but if the ADX continues to remain low, the trend may stagnate or reverse in the near future.
Source: TradingView
Will Bitcoin continue to rise or start to cool down?
Bitcoin's upward momentum is based on strong buying power, miners limiting their sales, and positive spot capital flows. However, signs of overvaluation, declining trading volume, and weak trend strength warn of the possibility of the market entering a correction or sideways phase.
Only when new capital participates again and technical indicators confirm can Bitcoin extend its upward trend. The upcoming time will be crucial to assess the market's ability to maintain or reverse its trend.
Frequently Asked Questions
What does the sharp decline in stablecoins on exchanges signal? This indicates that investors are using stablecoins to buy Bitcoin, showing strong confidence and demand from the spot market. Is the significant increase in NVT and NVM concerning? A high index indicates that Bitcoin's price may be exceeding the network's actual value, signaling increased risk of short-term price corrections. Why are miners reducing sales while prices rise? Miners holding coins indicate they expect prices to continue rising and want to hold long-term instead of taking profits early. What does a low ADX indicate about Bitcoin's trend? A low ADX means the current trend is weak; although prices may rise, the certainty of the trend is still low and easily changeable. Where will Bitcoin head in the coming days? The market is in a sensitive phase; Bitcoin may continue to rise if new capital enters or enter a corrective phase if trading volume does not recover.
Source: https://tintucbitcoin.com/bitcoin-tang-gia-nho-stablecoin-can-kiet/
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