BTC Liquidity Struggles Persist, But $140K Target Remains Firm

Bitcoin (BTC), the flagship cryptocurrency, continues to grapple with liquidity challenges that hinder its market dynamics. Despite these struggles, the aspirational price target of $140,000 remains steadfast among proponents and analysts alike. Liquidity, defined as the ease with which an asset can be bought or sold without affecting its price, is critical for maintaining market stability and investor confidence . The ongoing liquidity issues stem from various factors including regulatory uncertainties and market volatility that deter institutional investment.

According to CryptoQuant, Bitcoin’s Net Taker Volume again turned negative, dropping below $60 million. This metric indicates that market takers executing trades are predominantly selling. The negative readings underscore growing bearish sentiment among retail participants, even with Bitcoin hovering near record levels.

Large holders and miners have also been ramping up their deposits since July 18. However, overall inflows to centralized exchanges remain relatively low compared to the levels observed during major market tops earlier this year.

Meanwhile, the Unspent Transaction Output (UTXO) count continues to decline – a trend often interpreted as a sign of long-term accumulation. Investors appear to be consolidating their coins, reducing active transactions and indicating strong conviction in Bitcoin’s long-term potential.

For context, a declining UTXO count typically reflects reduced short-term selling pressure as holders move BTC into fewer wallets rather than trading them. This behavior is commonly associated with an overall bullish market outlook.

Bitcoin is currently trading at $119,765, sitting right at a descending trend line that has capped prices since the July 14 all-time high. The technical setup presents a classic inflection point that could determine whether BTC closes above $120,000 by July 25.

The analyst emphasized that as long as Bitcoin defends the $110,000 level, the broader bullish trend will remain intact. Moreover, if ETF and institutional inflows gain further momentum, BTC could still reach the ambitious year-end target of $180,000.

Moreover, the persistent demand for Bitcoin amid these liquidity challenges indicates a robust belief in its long-term value proposition. Analysts posit that as institutional adoption increases and trading infrastructure improves, BTC could overcome current hurdles . This optimism is further supported by historical price movements and macroeconomic trends suggesting potential upward trajectories. Therefore, while liquidity struggles may pose short-term obstacles, the consensus surrounding a $140K target reflects a broader faith in Bitcoin's resilience and future growth potential.

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Sara H

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