{"id":26599,"date":"2025-07-17T06:12:08","date_gmt":"2025-07-17T06:12:08","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=26599"},"modified":"2025-07-17T06:12:08","modified_gmt":"2025-07-17T06:12:08","slug":"bitcoin-eyes-breakout-as-stablecoin-floods-market","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/bitcoin-eyes-breakout-as-stablecoin-floods-market\/","title":{"rendered":"Bitcoin Eyes Breakout as Stablecoin Floods Market"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/download-6-1-1024x559.png\" alt=\"\" class=\"wp-image-20220\" \/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bitcoin consolidates below $120K after tagging $120,062<\/li>\n\n\n\n<li>Over $2B in stablecoin deposits point to leveraged buying interest<\/li>\n\n\n\n<li>Open interest and Coinbase Premium suggest rising demand<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Bitcoin continues to stabilise within the $116,000\u2013$120,000 range, keeping traders on edge as the asset attempts to gather momentum for a fresh breakout.<\/p>\n\n\n\n<p>Overnight, BTC touched a high of <strong>$120,062<\/strong>, before retreating to current levels near <strong>$118,300<\/strong>, indicating the market is digesting gains while bracing for the next move.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Bitcoin\u2019s record-breaking rally has hedge funds dusting off a tried-and-true Ether arbitrage strategy <a href=\"https:\/\/t.co\/ApeMV9igLx\">https:\/\/t.co\/ApeMV9igLx<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1945236038957289637?ref_src=twsrc%5Etfw\">July 15, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>What\u2019s fuelling the optimism isn\u2019t price action alone\u2014it\u2019s the <strong>$2 billion<\/strong> in newly minted stablecoins that flooded derivatives platforms early today, according to CryptoQuant contributor Amr Taha.<\/p>\n\n\n\n<p>This sudden liquidity injection, primarily in <strong>Tether (USDT)<\/strong>, is widely interpreted as <a href=\"https:\/\/t.co\/qLbwMQBrA0\" target=\"_blank\" rel=\"noopener\" title=\"\">a signal of institutional money entering the market<\/a>, setting up for leveraged long positions across BTC and major altcoins.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Liquidity and Leverage<\/h2>\n\n\n\n<p>Historically, large-scale stablecoin deposits act as an early warning system for incoming rallies. When these inflows target derivatives exchanges, they often precede a surge in open interest\u2014something we\u2019re already seeing unfold.<\/p>\n\n\n\n<p>Open interest is climbing alongside price action, a textbook signal of <strong>bullish conviction<\/strong> and increasing trader participation.<\/p>\n\n\n\n<p>Yet, this also raises the stakes. Rising open interest implies a leverage build-up, which could cut both ways: it fuels momentum in the short term but also magnifies risk should sentiment shift sharply.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>Bitcoin has slipped into a short-term downtrend after failing to hold the 120,000 level, marking a local top at 120,062 before retracing toward 118,000.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image-16.jpg\" alt=\"\" class=\"wp-image-26600\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: BTC rejected at 120K and losing steam fast, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>The MACD confirms weakening momentum with a sharp bearish crossover and widening histogram divergence, signalling continued selling pressure in the near term. Price has now slipped below all three short-term moving averages (5, 10, 30), and the recent bounce appears corrective rather than a reversal.<\/p>\n\n\n\n<p>Macro sentiment hasn\u2019t helped. This week, Fed Chair Powell <a href=\"https:\/\/t.co\/uA6DLkB3cz\" target=\"_blank\" rel=\"noopener\" title=\"\">reaffirmed the Fed\u2019s cautious stance on rate cuts<\/a>, while on-chain data from CryptoQuant shows slowing inflows to derivatives exchanges\u2014hinting at reduced appetite for aggressive long positions.<\/p>\n\n\n\n<p>With a lower high now in place and 118,000 being retested, bulls will need to reclaim 119,000 swiftly or risk seeing BTC retest the 117,000\u2013116,500 liquidity zone.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">A Local Top, or Just a Breather?<\/h2>\n\n\n\n<p>Despite signs of short-term exhaustion, there hasn\u2019t yet been a steep pullback. That itself is telling. It points to <a href=\"https:\/\/t.co\/PoU196Nafg\">strong underlying demand<\/a> and a market more inclined to consolidate than capitulate.<\/p>\n\n\n\n<p>At time of writing, <strong>BTC trades at $119,171<\/strong>, up <strong>2.4%<\/strong> over the last 24 hours. With fresh stablecoin firepower ready to be deployed, and derivatives traders clearly positioning for more upside, all eyes are now on whether Bitcoin can mount a clean breakout above $120,000\u2014or whether it needs to shake out weak hands first.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Create your live VT Markets account<\/a> and <a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*5vyjdn*_gcl_au*Njc1MzM0NjY0LjE3NTEzNTM4MTc.*_ga*MjA5ODA0NDIzNC4xNzI3OTE1ODQ1*_ga_J26NL1ZVX7*czE3NTE4NzkxMDYkbzMwOCRnMSR0MTc1MTg3OTExOCRqNDgkbDAkaDA.*_ga_6XQ8153GYW*czE3NTE4NzkxMDgkbzU3JGcxJHQxNzUxODc5MTE4JGo1MCRsMCRoMA..*_ga_BG6LYEHPX1*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMTgkajUwJGwwJGgw*_ga_J8BRGZSREX*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_7CG6454YR5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_69Z54R4H9N*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_CY2VCKFC3C*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_TXZ07R2C21*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_17TMGY9BBE*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_MWDVVSEVL5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_2QCC3S2748*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_E7D2PCX624*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_XJ4037XKK6*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_EJCVQDC7VT*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjYkajQyJGwwJGgw\" target=\"_blank\" rel=\"noopener\" title=\"\">start trading<\/a> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin stabilises in the $116K\u2013$120K zone as $2B in stablecoin inflows hint at breakout potential. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":20220,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[21],"class_list":["post-26599","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-bitcoin"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=26599"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26599\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/20220"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=26599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=26599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=26599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}