Bitcoin Bulls Charge Toward $112K—But Miner Sell-Offs Threaten the Rally

Bitcoin’s price surge has traders eyeing $112,000 as the next psychological battleground. Yet lurking beneath the euphoria? A wave of miner outflows that could short-circuit the momentum.

Miners are cashing out—because even crypto’s true believers need to pay their electricity bills. The irony isn’t lost on anyone: the very machines securing the network might kneecap its bull run.

Will retail FOMO outpace the sell pressure? Or will this turn into another ’buy the rumor, sell the news’ circus? Grab your popcorn—and maybe a hedge.

Source: CryptoQuant

Potential profit-taking phase ahead

Having said that, miner behavior flashed caution.

The Miners’ Position Index (MPI) surged 98.82% in the past 24 hours, reaching 1.89.

This value, well above the neutral benchmark of 1.0, suggests that miners are accelerating BTC outflows, possibly to capitalize on recent price gains. 

Historically, sharp increases in MPI have coincided with local tops or early distribution phases. However, this behavior could also reflect miners’ confidence in sustained liquidity and favorable price conditions. 

Bitcoin’s Stock-to-Flow (S2F) ratio jumped 20% in the last 24 hours, reinforcing the asset’s scarcity narrative. 

This spike reflects a growing gap between circulating supply and newly minted coins. Investors often view higher S2F ratios as bullish, especially when demand remains steady or increases. 

With bitcoin consolidating near a multi-month high, this scarcity metric supports the thesis that limited supply could fuel further upside.

Source: CryptoQuant

BTC user engagement climbs

In fact, on-chain activity supports the bullish sentiment, with Active Addresses increasing by 13.14% and New Addresses rising 14.36% over the past week. 

Meanwhile, Zero-Balance Addresses surged by 31.93%, indicating wallet recycling or renewed participation. Together, these point to a healthier, more active network—one where new capital continues to rotate in.

Source: IntoTheBlock

While most indicators flash bullish, large holders appear to be trimming positions.

Netflows have declined by over 152% in the last seven days, signaling potential distribution or portfolio rebalancing at elevated price levels. 

However, Bitcoin’s price has remained firm despite this, indicating that buy-side pressure is absorbing the outflows. This divergence suggests a resilient market structure.

Will $112K liquidation zone trigger volatility?

According to Binance’s Liquidation Heatmap, significant liquidation clusters exist NEAR the $112K and $114K levels. 

These areas may act as resistance or could trigger a cascade of short liquidations if breached. At present, BTC remains just shy of these pressure points, consolidating as bulls and bears face off.

Source: CoinGlass

The bullish sentiment in derivatives, network growth, and scarcity metrics suggests Bitcoin remains on solid footing.

However, rising Miner Outflows and declining Whale Netflows hint at potential supply-side friction. 

Still, the market has absorbed this pressure well. If Bitcoin breaks through $112K, momentum could accelerate significantly, confirming the strength of the current uptrend.