Bitcoin (BTC) has stabilized above $104,000 and has confidently established itself around $105,000 for the first time in a while. According to analysts at Alphractal, it is at the level of $106,000 that an active profit-taking phase may begin, especially from long-term holders and whales.
According to historical patterns, local selling pressure has often begun above $106K. Currently, more than 97% of the total BTC supply is in profit, and even short-term investors do not yet see reasons for capitulation. This brings us back to the levels of December 2024, when the market was also at a local peak.
From the current positions, Bitcoin is likely to continue its attempts to approach its historical high above $109,000. However, the alpha price level ($106K+) traditionally triggers a wave of sell-offs from old wallets. Analysts warn: BTC may face pressure and get stuck in this zone.
In addition, BTC is testing support levels: on Monday the price dropped to $102,000 before bouncing back. Bitcoin's dominance in the market has also fallen — to 59.4%, as investor attention has temporarily shifted towards Ethereum (ETH).
The fear and greed index for BTC again shows 'greed' — 70 points compared to less than 40 last month. Such rapid dynamics indicate market overheating and a potential onset of a correction phase. Even if not globally — then at least short-term.
The level of $106,000 in derivatives has special significance. This is where the largest number of short positions are concentrated — over $83 million in liquidity is concentrated at the mark of $106,515.86. At the same time, Monday's price drop led to the liquidation of long positions down to $102,000, which could potentially trigger the opposite effect — a short squeeze and a sharp rebound upwards.
