- Bitcoin eyes $110K breakout as liquidity sweeps ignite bullish market momentum
- Shrinking BTC exchange supply signals growing long-term conviction and ETF demand
- Long-term holders stay firm as realized profits drop despite prices hitting new highs
Bitcoin has made a decisive move upward, clearing critical resistance levels and signaling strong bullish momentum. Trading at $109,569, the asset now sits in a consolidation zone just below a vital threshold of $110,545. This movement reflects renewed investor confidence, fueled by aggressive liquidity grabs at lower price points.
The market is showing signs of strength as long-term holders refuse to sell, despite prices climbing significantly. With supply on exchanges falling and institutional interest rising, the stage is set for a potential breakout toward new all-time highs within the next two weeks.
Strong Liquidity Sweeps Fuel the Breakout
Bitcoin’s recent price action shows calculated dips below key support areas, including $105,500 and even briefly under $100,000. These moves triggered aggressive buying, indicating a strong demand base waiting to enter.
According to market analyst Michaël van de Poppe, these short-term liquidity sweeps served as fuel for the current upward breakout. BTC successfully reclaimed and stabilized above the $108,000 mark, a zone that now acts as a support level. Holding above this threshold significantly increases the likelihood of a new all-time high forming soon.
Moreover, the break above $106,500 resistance and the subsequent consolidation paints a healthy technical picture. If Bitcoin breaches the $110,545 mark, we could see rapid acceleration toward price discovery. This bullish structure indicates that momentum remains intact, especially as buyers continue to step in during minor retracements.
Shrinking Exchange Supply Signals Long-Term Holding
Further supporting this rally, data from CryptoRank shows that Bitcoin supply on centralized exchanges is steadily shrinking. This decline indicates fewer coins are available for trading, pointing to rising demand for long-term storage. Investors are increasingly transferring BTC to private wallets, ETF custody, or decentralized finance (DeFi) protocols, reducing market liquidity.
This behavior marks a shift from short-term speculation to long-term conviction. The emergence of Bitcoin DeFi has also opened new utility options for BTC, pulling it further away from exchanges. Institutional inflows into ETFs continue to grow, confirming broader adoption and more mature market dynamics.
Long-Term Holders Remain Steadfast
Glassnode data highlights that most Bitcoin holders are now in profit as prices rebound above $107,000. However, profit-taking remains limited. This muted distribution suggests investors are content to hold through the rally, expecting further gains.
Realized profits are declining, while long-term holder supply reaches all-time highs. ETF inflows remain steady, reinforcing market strength.
