Bitcoin Price Nears $106K Resistance—Will $115K Be the Next Stop?

Key Insights

• BTC trades near $103.9K with $106K as key resistance; breakout could target $115K
• Over $1.5B in short positions may be liquidated if BTC pushes beyond $115K
• Large holders now control over 3.48M BTC, continuing steady accumulation since November

More than $1.5 billion in short positions are at risk of liquidation as Bitcoin surges toward the $106,000 resistance level. At the same time, wallets with holdings of 1K to 10K BTC are still buying in, which indicates that strategic investors and institutions are still bullish.

BTC Price Approaches a Key Resistance Level

Bitcoin is approaching an important resistance area of $106,000. At the time of writing, BTC was trading at $103,980. Price opened the day near $102,942, reached a high of $104,085, and was able to remain above $102,784 for the entire day.

Currently, the range between $102,000 and $106,000 is an essential crossroads for Bitcoin. This zone was earlier this year a barrier to Bitcoin’s ability to go higher and was a significant resistance.

With the price trying to break out of this area from below, traders are seeking a clear breakout. A narrow range above $106,000 would mean that $115,000 may be the next possible price ceiling for Bitcoin.

The chart shows a strong uptrend starting after mid-April when BTC surpassed the $90,000 mark. Price gained quickly across several minor resistances, accompanied by high market volume.

As BTC is likely to run higher if it can break $106,000 sustainably, traders are optimistic for a prolonged rally.

Large Holders Keep Accumulating BTC

Large holders of Bitcoin have continued to accumulate theirholdings according to on-chain metrics from CryptoRank and CryptoQuant. Wallets that store between 1,000 and 10,000 BTC have increased between January and May 2025. The blue line on the chart indicates that holdings have been rising since November 2024.

Investors in this category are often agents of hedge funds, mining operations, and other institutional buyers. These companies tend to act on long-term views and not on short-term market fluctuations.

The consistent purchasing by these entities reflects confidence in the robust prospects of continued price rise and long-term appreciation.

Liquidation Risk Builds Above Current Levels

Meanwhile, liquidation thresholds are concentrated above the $104,000 to $106,000 range, according to CoinGlass. If the price rises to $115,000, cumulative short liquidations are likely to be triggered. At that level, about $1.5 billion in long positions could get triggered.

Short liquidation occurs when speculators who bet on a price drop are forced to liquidate their positions as Bitcoin appreciates. When these forced buys come into the market, they may intensify the positive trend to push prices up.

If Bitcoin breaks above $106,000 and rallies higher with momentum to $110,000, a chain of forced liquidations may occur. This has typically amplified previous upswings and would sustain the upward price goals outlined in technical views.

On the other hand, at levels below the current, the chart shows minimal liquidation zones, meaning that the short-term downside pressure is not substantial unless there is a sudden change.

Long-Term Signals Point to Caution

While the evidence for Bitcoin’s resilience continues to accumulate, one signal suggests that the market may be overheating. Coinvo’s Market Cap to Thermocap Ratio compares the market cap of Bitcoin to the total historical costs borne by miners.

A trend that is repeated in the chart: When this ratio spikes into the “Extremely Overbought Zone”, Bitcoin usually makes local highs. At present, the ratio is now approaching the same upper limit that marked the end of previous cycles in 2013, 2017, and 2021.

Bitcoin is currently trading between $100,000 to $105,000. This is very similar to the previous cycle tops that were experienced just before the Thermocap ratio began to decline.

This does not necessarily have to be a high point, but it can guide the strategies of long-term investors based on past behaviour. If the market continues in the manner it has in the past, then a breakout above $115,000 can support the upward movement.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.