Bitcoin
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Key Insights:
- Bitcoin risks $2.7B in liquidations if it drops below $108K.
- Bulls target $116K–$130K on confirmed breakout above $110K.
- Neutral funding rates signal trader hesitation near all-time highs.
Bitcoin trades near $109,250 with bulls targeting $130K. However, a drop below $108K could trigger $2.7 billion in liquidations, exposing bulls to sharp downside risks amid diverging market signals.
Bulls Face Test As Bitcoin Struggles To Reclaim $110K
Bitcoin hovered around $109,250 on Thursday after failing to hold a breakout above the $110,000 resistance. The move kept traders split on the next major swing, with bullish targets extending to $130,000 while bearish scenarios threaten long liquidations near $99,000.
Daan Crypto Trades warned that a close below $108,000 could mark the start of a bearish reversal. “You don’t want to see this deviate back below $108K again at this point,” the trader posted on Thursday. He noted that Bitcoin was “attempting a breakout” but lacked momentum.
The asset reached $110,498 during the session, only to retrace back under $109,300, according to CoinMarketCap data. It now trades 2.5% below its all-time high of $111,970.
$2.7B Longs at Risk If $108K Fails
The $108,000 zone has become a critical pivot for bulls. Bitcoin reclaimed the level on Wednesday after briefly losing it in late June. Daan warned that if the price revisits and break below that line, a cascade could follow, dragging Bitcoin as low as $96,000.
That scenario would also place roughly $2.67 billion in long positions at risk, based on liquidation data from CoinGlass. Traders will closely watch $99,445 as a danger zone dipping below it could trigger mass liquidations.
Bitcoin has not seen sub-$100,000 prices since June 22, when it briefly touched $98,900 during heightened geopolitical tensions between Israel and Iran.
Funding rates, however, remain unusually neutral. K33 Research analyst Vetle Lunde highlighted the lack of aggressive long positioning despite Bitcoin pressing against its record high. This absence of leverage conviction adds to concerns over a potential bull trap near the $110,000 mark.
Traders See $116K–$130K If Breakout Confirmed
Despite short-term weakness, some analysts remain optimistic. Crypto trader Miles Deutscher said, “It’s very hard to be bearish here.” Others, like CryptoFayz, posted charts showing a potential push to $116,000 once the $111,960 ceiling breaks.
Markus Thielen from 10x Research also backed a bullish scenario. He cited strong inflows into spot Bitcoin exchange-traded funds, falling Bitcoin supply on exchanges, and uncertainty over U.S. Federal Reserve policy as upward drivers. Thielen expects Bitcoin to reach $116,000 before the end of July.
A more aggressive outlook came from Coinvo, who claimed, “All it takes for $BTC to teleport straight to $130,000 is a simple candle close above this trendline.”
Claire Jensen noted that Bitcoin had reclaimed $109,000, calling the move “bullish” and pointing to a bullish engulfing candle pattern forming above resistance.
Market Liquidity Clusters Near Resistance
Still, Bitcoin price action near the $110,000 level has shown signs of weakness. Data from Maartunn shows a cluster of taker sell volume forming at that zone, suggesting increased profit-taking or distribution among large holders.
This aligns with previous behavior near cycle tops. Traders like KillaXBT observed that Bitcoin has triggered fakeouts both above resistance and below support, aimed at liquidating leveraged positions before a major directional move.
Veteran trader Byzantine General echoed that view, sharing futures data indicating Bitcoin may be “coiling” for a move to $112,000, backed by expanding open interest. Historically, this type of setup has led to breakouts when confirmed by price action.
Consolidation Looks Different This Cycle
Daan Crypto Trades also noted that Bitcoin’s current consolidation deviates slightly from previous ones in this cycle. “It is still following the same pattern where it stalls, deviates below, retakes the range and then grinds higher,” he explained. However, this time it lacks the final breakout and strong continuation.
James McKay of McKay Research added that prolonged consolidations could disrupt Bitcoin’s traditional four-year cycle. “The longer we have these periodic, multimonth consolidations, the more it’s going to take us off the beaten path,” he said.
Bitcoin’s price sits in a critical zone. Bulls eye a breakout above $110,000 to spark a rally to $116K and beyond. But the threat of long liquidations remains high if $108,000 fails to hold. With mixed signals across derivatives and spot markets, Bitcoin’s next move could either confirm the uptrend—or end it.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
