Key Takeaways:
- Retail euphoria surges as Bitcoin trades just 3.6% below its all-time high, with bullish sentiment hitting a 7-month peak, according to Santiment.
- Key resistance and liquidation risks loom, as high MVRV ratios and clustered leveraged positions above $112K threaten to trigger a volatile shakeout.
Bitcoin [BTC] is flirting with a return to record highs, sparking a wave of retail excitement across crypto markets. At press time, BTC traded at $107,927—just 3.6% below its previous all-time high. According to blockchain analytics firm Santiment, bullish sentiment has surged to levels not seen since November 2024, with the ratio of positive to negative BTC comments spiking to 2.1.
😍 With Bitcoin teasing its $112K all-time high the past couple days, retail has gotten bullish. There are more than double the amount of positive $BTC comments vs. negative across social media, the highest ratio since Trump was elected over 7 months ago. pic.twitter.com/kdb4ZtDwIq
— Santiment (@santimentfeed) June 11, 2025
This optimism coincides with a potential breakout—but also warns of looming risks. With Bitcoin nearing key liquidation zones, much depends on how leveraged traders respond.
According to CryptoQuant, the MVRV Ratio—a measure of unrealized profits—stands at 2.27, above the historical danger zone of 2.0 where distribution often begins. While this indicates BTC holders are sitting on substantial gains, a slight 1.97% dip in the metric suggests some traders may already be taking profits.
Fueling speculation of a continued rally is the Stablecoin Supply Ratio, which climbed 0.98% to 18.21. This points to growing stablecoin reserves waiting on the sidelines—potentially ready to push BTC higher if $108K is breached convincingly. Yet, the modest increase suggests investors remain cautiously bullish, awaiting stronger confirmation.
Meanwhile, exchange reserves dropped by 1.67% to $269.7 billion over the past day, signaling reduced sell-side pressure. Traders pulling BTC off exchanges typically indicates long-term confidence. Still, unless fresh capital enters the market, reduced supply alone may not sustain a breakout above key resistance levels.
Also Read: Hex Trust Integrates sBTC via SIP-010 to Enable Institutional Bitcoin DeFi Access
Perhaps the biggest wild card is leverage. CoinGlass data reveals dense clusters of 50x and 100x long positions just above current prices. A rejection near $112K could trigger a liquidation cascade, unwinding bullish momentum in a flash. Conversely, a decisive breakout could squeeze shorts and catapult BTC to new highs.
In short, Bitcoin’s bullish setup is gaining strength, driven by sentiment, shrinking exchange supply, and dry powder in stablecoins. But with overheated profit levels and a minefield of leveraged positions above, BTC’s rally remains fragile. Traders should brace for volatility as the king of crypto tests the psychological $112K barrier.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
