Bitcoin's price action faces potential turbulence as Spot demand declines and leveraged bullish betting surges. The market shows signs of resistance before a possible breakout toward $70,000.

Market Indicators Highlight Growing Risks

Data from Glassnode indicates that Bitcoin realized strong profit-taking near $65,000, coinciding with increased hot capital inflows and rising sell-side pressure. Around early July, Spot demand briefly recovered to approximately negative 80,000 BTC but has since weakened sharply, nearing negative 170,000 BTC. This decline suggests dwindling fresh buying interest, which analysts warn could trigger a significant long liquidation event.

Supporting this outlook, CryptoQuant reports that Bitcoin’s positive funding rates have escalated by over 20% within a 72-hour window, signaling heightened bullish use. Without renewed Spot demand, the market risks a sharp correction due to crowded long positions.

The last 48 hours resembled a classic short squeeze scenario with Bitcoin short liquidations surpassing $80 million, representing more than 90% of total liquidations. This coincided with Bitcoin reclaiming the $66,000 level, pushing short sellers out of the market. However, the absence of Spot buying interest raises concerns that this rally might be temporary.

Whale Activity Suggests Accumulation Amid Correction

Contrasting weaker Spot bids, Bitcoin whales have accumulated 66,700 BTC over the past two months, even as the price retreated approximately 25% to around $58,000. Meanwhile, mid-sized holders sold 77,800 BTC during this period. This pattern hints at a transition from short-term to long-term holders, traditionally seen before sustained bullish trends.

AMBCrypto notes that the recent surge in long derivative positions may represent strategic accumulation rather than speculative excess. If Spot demand recovers, this could enable bulls to reverse the current setup, squeeze late bears, and push Bitcoin closer to the $70,000 milestone.

Material is for informational purposes only and does not constitute financial advice.