Bitcoin’s momentum continues to strengthen as critical indicators now point to growing buyer dominance and the potential for a short squeeze. At press time, the leading cryptocurrency was trading at $107,642, reflecting a 1.84% daily increase. A series of on-chain and derivatives metrics now suggest Bitcoin might be on the cusp of a powerful move higher.

Buy/Sell Ratio Signals Strong Buyer Activity

One of the most notable metrics is the Taker Buy/Sell Ratio, which recently climbed to 1.1. This indicates aggressive buying by traders in the spot and derivatives markets, a development that often precedes bullish price action.

At the same time, Unspent Transaction Output (UTXO) bands reveal that short-term holders are holding onto their profits. This behavior indicates growing confidence among traders, suggesting they expect further upside in the near term rather than rushing to sell at local highs.

These two metrics together show that traders are preparing for an extended rally, supported by solid spot demand and fewer signs of early profit-taking.

Long-Term Holders Strengthen the Base

Another key signal supporting the bullish thesis comes from the behavior of long-term holders (LTHs). The Realized Cap of this group has surged beyond $56 billion. Importantly, coins aged over 155 days are increasingly being moved into wallets with little or no transaction activity.

This behavior typically signals strong conviction. Historically, when long-term investors begin locking away supply, Bitcoin enters a more sustained upward trend. Such wallet movements have been observed in the early phases of major bull markets.

The data indicates that this cohort is not interested in short-term profits but is instead preparing for higher valuations in the future.

Older Coins Move, but Selling Pressure Remains Weak

Some market participants may be concerned about a recent increase in Coin Days Destroyed (CDD), which measures how long coins have remained idle before being moved. The metric rose by 3.83% to 291,400 for exchange inflows, suggesting some older coins have been sent to exchanges.

However, analysts say this doesn’t necessarily point to widespread selling. The move appears modest and may reflect routine portfolio rebalancing or minor profit realization by a few investors. Given the broader accumulation trend among LTHs, this uptick in CDD doesn’t seem to carry bearish weight in the current context.

Volatility Compression Points to Impending Move

Bitcoin’s 30-day volatility dropped to 21.68%—its lowest level in nearly a month. Historically, tight volatility ranges tend to lead to sharp breakouts. While such moves can happen in either direction, the current backdrop suggests a bullish breakout is more likely.

The combination of long-term holder confidence, positive taker buy volume, and a robust short-term trend is creating the conditions for a move higher. This low-volatility phase could be the calm before a storm.

Shorts Crowded on Binance—Squeeze Incoming?

The derivatives market is also flashing a critical signal. On Binance, 60.51% of traders are currently holding short positions. The long/short ratio dropped to 0.65, indicating a heavily one-sided market. In such environments, any upward momentum in price could trigger rapid liquidations.

When the market is this skewed to the short side, even a moderate move upward can force short sellers to exit their positions. This creates a chain reaction known as a short squeeze, which can drive prices up aggressively.

This setup, combined with rising buyer interest and a solid accumulation base, suggests the market is positioned for an explosive move.

Key Takeaways and What’s Next for Bitcoin

All critical signals—on-chain accumulation, long-term conviction, and derivatives data—point to a growing bullish bias for Bitcoin. Despite a slight increase in exchange inflows from older coins, the broader metrics still lean toward accumulation rather than distribution.

The current situation mirrors the early stages of previous major uptrends, where low volatility, aggressive buying, and crowded shorts paved the way for breakout rallies.

If buyers maintain their strength and no external shocks disrupt momentum, Bitcoin could be setting up for its next leg higher—potentially pushing well beyond the $110,000 mark in the short to medium term.

Conclusion

Bitcoin’s bullish momentum is gaining traction across several fronts. From increased taker buy activity and low volatility to long-term holder confidence and a heavily shorted derivatives market, all signs suggest a potential breakout is brewing.

The market now awaits the next catalyst. If the current trend holds, Bitcoin may be gearing up for another historic rally—one that could challenge recent highs and possibly set new records in the coming weeks.