As the price pointer of Bitcoin approaches the $110,000 lifeline, the entire crypto market seems to have pressed the 'nervous button', and the liquidation battle between bulls and bears has directly escalated into a brutal confrontation of 'death asymmetry' — once it falls below this threshold, the $735 million long positions in major exchanges would be like lambs to the slaughter, instantly becoming cannon fodder, while the bears would take home $100 million in spoils, staging a textbook-level 'comeback slaughter'!
Core contradiction: Bulls are standing on the 'edge of the cliff', with $110,000 as the last psychological defense line
For the bulls, $110,000 is no longer just a simple price point, but a 'psychological defense line' hanging by a thread. As long as the price dips slightly below this number, the domino effect of liquidations will immediately unfold: first, a batch of long positions will be forced to close, triggering a short-term price plunge; then, panic emotions will spread like a virus, leading more retail investors to follow suit and sell, creating a vicious cycle of 'the more it falls, the more they sell, and the more they sell, the more it falls'.
On the contrary, the bears face almost no pressure in the range above $112,000 — with no threat of large stop-loss orders and able to quietly lay out amidst the bulls' panic. This seemingly 'imbalanced' situation exposes a fatal problem in the current market: too many people are overly relying on Bitcoin's bullish trend, and once a correction comes, those retail investors who entered at high prices will inevitably become 'cannon fodder' in the market's fluctuations.
Institutions VS whales: The covert battle escalates! One side is buying frantically while the other is selling, throwing the market into chaos
While retail investors are still struggling with the long-short direction, institutions and whales have already secretly begun their 'divine battle':
Institutions are buying crazily: The Bitcoin ETFs under the two giants, BlackRock and Fidelity, have seen net inflows breaking $2.75 billion in just one week! Traditional financial institutions continue to open Bitcoin trading channels, using real funds to create 'structural demand', as if they are shouting 'Bitcoin, I’m all in'.
A whale suddenly dumps: While institutions are buying fervently, a mysterious whale quietly takes action — cashing out 24,000 Bitcoin from one address, triggering huge waves in the derivatives market, with daily liquidation amounts soaring to $900 million, becoming the 'fuse' for this round of Bitcoin's decline.
On one side, institutions are 'buying low and bottom-fishing', while on the other side, whales are 'selling high and cashing out'; the collision of these two operations not only makes the short-term market chaotic but also suggests risks for the mid-term top. However, thanks to the continuous inflow of funds into ETFs, it may reshape the narrative of Bitcoin as 'digital gold', leaving a glimmer of breathing space for the market.
Macro 'ticking time bomb': Two major variables determine life and death, both the Federal Reserve and Trump have become 'key figures'
In addition to the internal games in the market, external macro factors are also like two 'ticking time bombs', ready to explode Bitcoin's market at any time:
The Federal Reserve's 'interest rate cut dilemma': Currently, the market's expectations for a rate cut by the Federal Reserve in September are rising, but if inflation suddenly rebounds, risk assets like Bitcoin will be hit hard with 'cold water' — after all, once the Federal Reserve tightens monetary policy, funds will flow out of the crypto market, and prices are likely to fall in response.
Trump's 'Bitcoin Bill': If the national Bitcoin reserve bill he promotes can be implemented, it will undoubtedly create a demand level in the hundreds of billions for Bitcoin, equivalent to injecting a 'shot of adrenaline' into the market; however, his tariff policy has also been postponed, casting a shadow of uncertainty over the market and leaving the future direction unpredictable.
Technical life-and-death battle: Bullish signal VS bearish trap, which one to believe in?
From a technical chart perspective, Bitcoin is currently in an awkward situation of 'bull-bear signal fighting':
The bullish signal is very tempting: the 50-day moving average and the 30-day moving average have formed a 'golden cross', and one should know that this pattern has a historical win rate of over 70%, equivalent to the technical side shouting 'there's a chance of rising'; moreover, the RSI indicator has not yet reached the overbought zone, indicating there is still some upward space left.
Bearish traps hide risks: At the $117,000 level, a 'lower high' pattern has appeared, and coupled with the previous sales by whales, many analysts believe that Bitcoin's upward momentum has 'almost run out', which is likely a 'trap' set by the bears, just waiting for the bulls to jump in.
Xing Ge's exclusive advice: How to operate in the short and long term? Please keep this survival guide close
In the face of such a chaotic market, the advice given by Te Ge can be seen as a 'lifesaving guide':
Short-term operation: If the price can break through $112,000, one can decisively chase longs, targeting $120,000; but once it falls below $105,000, one must immediately be alert to a 'waterfall decline', and don’t hesitate, stop-loss if necessary.
Long-term layout: Don't be misled by short-term fluctuations; entering at dips is the way to go, while also paying more attention to opportunities in the Bitcoin L2 ecosystem, as there might be a chance to dig up 'potential stocks'.
In addition, there are three 'survival iron rules' that must be remembered:
Stop-loss is key: For short-term operations, be sure to set a stop-loss line of 5%-8%, after all, no one knows when a policy 'black swan' might appear; as long as the green mountains remain, there’s no fear of not having firewood to burn.
Diversify investments: Don’t dump all your money into Bitcoin; allocate some to other assets like ETH and SOL to effectively hedge against volatility risks.
Beware of 'spike': Key nodes like CPI data releases and SEC regulatory actions could very likely trigger minute-level crashes, so never use high leverage, or you might face liquidation at any moment.
Lastly, a reminder: The $110,000 line is both the 'guillotine' for the bulls and the 'Waterloo' for the bears. Now institutions are secretly laying out, and every time retail investors open positions, it could become 'dessert' in the mouths of the giants. No matter how crazy the market gets, maintain your rationality and don't let greed and fear dictate your operations!
Still, the same old saying: Feeling lost and helpless about when to enter? Follow Xing Ge, guiding you through the market's thorns and brambles!@神级猎手星哥
