Bitcoin News Today: Bitcoin’s On-Chain Tension Rises: Growing Liquidity Points to Upcoming Market Fluctuations

Bitcoin’s on-chain landscape is becoming increasingly compressed as significant liquidity pools form at crucial price points, indicating the likelihood of heightened volatility soon. The digital asset has remained confined within a tight corridor between $106,000 and $115,000 for the past two weeks, with both buyers and sellers repeatedly preventing any sustained breakout. In a recent

, analyst DaanCrypto pointed out that this period of sideways movement has resulted in a buildup of pending liquidation orders on both sides of the range. Such a setup, which often precedes major price movements, implies that a strong directional move could occur once Bitcoin escapes this band.

Currently, the price is being shaped by a battle between short-term speculators and larger institutional players. According to the TradingView analysis, the $106,000 level is heavily populated with long liquidation orders, making it a vital support, while the $115,000 area contains substantial short-side liquidity. If Bitcoin falls below $106,000, it could trigger a wave of selling and drive prices lower. Conversely, a decisive break above $115,000 could fuel a short squeeze, potentially sending Bitcoin toward its record high of $126,210. On the mining front, recent figures indicate that miner reserves have steadied, alleviating the selling pressure that weighed on the market earlier this year, as noted in a

. This stabilization has improved miners’ profitability and reduced the need for forced sales, creating a more supportive backdrop for a possible upward move.

Nonetheless, the route to a breakout is still lined with hazards. Should the price dip under $110,000, it could prompt renewed miner capitulation and intensify downward momentum, especially given ongoing macroeconomic uncertainties, according to the crypto.news report.

observes that as of October 25, Bitcoin has been consolidating above $111,000, with the 200-day moving average at $108,000 and the 100-day at $115,000 acting as significant benchmarks. Investors are watching closely to see if on-chain trends and ETF inflows can provide the spark needed to break out of the current range.

Further complicating the picture is Bitcoin’s correlation with the global M2 money supply. Some analysts suggest that Bitcoin’s price often anticipates peaks in global liquidity, serving as a leading indicator for monetary expansion, as illustrated in a

. Recent statistics reveal a rapid increase in global liquidity, and Bitcoin’s rebound from its $80,000 low in April 2025 could position it to benefit from ongoing monetary easing. This, combined with the increasingly compressed on-chain setup, points to the possibility of substantial price fluctuations for Bitcoin in the months ahead.