Bitcoin continues to hold above key support levels. The overnight attempt to crash from $110,000 ended in nothing — the bulls held their ground, preventing the price from dropping below $107,000. Support worked clearly along the upward line, just like in the textbook.

But what’s happening now is much more interesting — and dangerous.

Squeezing at the historical maximum

The price of Bitcoin is squeezed in a narrow corridor near the previous ATH, and it is here that something alarming is happening. We observe:

  • Squeezing to the resistance zone is often a precursor to either a powerful breakout or a reversal;

  • Profit-taking by large wallets — those with balances exceeding 10,000 BTC are actively selling;

  • Retail absorbing dips — small players are buying everything in sight, believing in a 'breakthrough to 120K and beyond.'

This is a classic scenario for retail investors. The widespread belief in endless growth against the backdrop of 'market elders' taking profits is a warning sign.

Liquidation trap

It is important to note: if the price drops below $100,000, long positions worth more than $10 billion will be liquidated. This could trigger a chain reaction, intensifying the decline and causing the market to capitulate.

Why is this dangerous? The psychology of the crowd and the cycle of greed.

The small investor almost always jumps in during the final phase of movement:

  • At peaks — greed, euphoria, FOMO;

  • After a dump — shock, panic, capitulation.

Right now we are witnessing a saturated phase of euphoria among retail investors. This doesn’t mean that a decline will start tomorrow. But when most participants only look up — the market is preparing to strike down.

What’s next?

  1. Technically: a sideways trend with increasing tension may end in an impulse — either up or down. The scenario of rising to $115K is possible, but more as a final spike before unloading.

  2. Behaviorally: retail still believes in a 'new era of crypto,' while major holders are already exiting. This imbalance often ends with a sharp position drop and a 'cleaning' of the market.

  3. Tactically: if you are currently out of position — great. Wait for a pullback or confirmation of a breakout. If you are in position — set the shortest stop loss and don’t give in to euphoria.

And what’s next?

The current consolidation may end with a short-term rise — but considering the behavior of major players, it’s important to keep a cool head. Remember: as soon as the crowd is confident in growth, a reversal is just around the corner.

Don’t lose your head in euphoria. A haircut may start very soon.

#Bitcoin2025 $BTC