Bitcoin Price at Risk: Analysts Warn of Drop to $109K Before Recovery
Key Takeaways
$BTC struggles to hold $113K, with analysts eyeing $109K support
Liquidity gaps suggest potential for short squeeze if resistance breaks
Volatility expected as BTC consolidates in tight range
Whale activity shows accumulation but lacks strong bid support
BTC Price Faces Downside Pressure
Bitcoin failed to sustain momentum above $113K, with multiple indicators pointing to further downside:
📉 Short-Term Target: $109K (previous all-time high zone)
📊 Liquidity Data: Weak bids above $110K (Binance order books)
🔄 Holder Behavior: Minimal distribution at $118K–$120K, suggesting long-term holding
Glassnode notes:
"The $109K–$116K range is acting as a staircase—steady accumulation but no strong breakout yet."
Bull vs. Bear Scenarios
✅ Bull Case:
Short squeeze potential: 70% of liquidations are shorts above current price
Break above 200 EMA/SMA (4-hour chart) could trigger rally
⚠ Bear Case:
Failure to hold $109K may lead to deeper correction
Low volatility could precede sharp downward move
Traders Await Volatility Surge
Daan Crypto Trades: *"Bulls need to reclaim 200 EMA/SMA to regain control."*
Michaël van de Poppe: "Patience needed—big move coming after this consolidation."
What to Watch
🔹 Key levels: $109K (support) vs. $116K (resistance)
🔹 Liquidity shifts: Short-term whale bids vs. overhead sell pressure
🔹 Volatility indicators: Bollinger Bands, RSI divergence
Posted: August 5, 2025 | Source: Cointelegraph
Why This Matters: Bitcoin’s next directional move hinges on whether it can defend $109K or trigger a liquidity hunt above $116K. Traders should prepare for breakout volatility.
