Bitcoin Liquidity Rises at $105K Mark – Are We Poised for New Peaks?

Bitcoin achieved a significant milestone this week, surpassing its previous all-time high by reaching $112,000 and stabilizing above the critical psychological threshold of $100,000. After weeks of sustained momentum and a bullish holding pattern, this breakout indicates a substantial change in market dynamics, confirming that bullish sentiment is currently prevailing. This uptick has rekindled hope throughout the market, with overall sentiment shifting positively as BTC embarks on another round of price discovery.

The breakout was not merely technical; it was supported by robust positioning in the derivatives market. Data reveals that a concentration of trading activity exists around the $105,700 mark, which could attract traders in the near term. Some are predicting a brief dip into this zone before BTC continues its upward trend.

The current market environment appears to favor bullish positions, with both technical indicators and blockchain data suggesting further price increases are likely. Provided that Bitcoin continues its trend above $100K and any decreases are minor, the most natural path seems to lead upward. Given the alignment of liquidity, market momentum, and broader economic sentiment, the upcoming weeks could prove pivotal as BTC influences the broader market landscape and potentially ushers in a more robust bullish phase.

Bitcoin Maintains Strength Amidst Challenging Conditions

Bitcoin has had another productive week, achieving a new peak of $112,000 before slightly retreating while holding firmly above the crucial $100,000 level. Despite this strength, market emotions have not fully reached euphoric levels. A cautiously positive sentiment prevails as external economic factors, such as high U.S. Treasury yields and escalating global trade uncertainty, exert pressure on risk assets.

In contrast to numerous altcoins, still trading significantly below their earlier peaks, Bitcoin has managed to prosper in this tense market atmosphere. Its stability is garnering attention, with investors favoring BTC over smaller, more unstable assets. This relative strength further cements Bitcoin’s role as a safe haven in unpredictable economic contexts.

Renowned analyst Ted Pillows added insights by pointing out substantial liquidity located around the $105,700 level on the BTC liquidation heatmap. According to Pillows, this concentration could act as a short-term draw, suggesting that a quick maneuver into this range might occur before Bitcoin continues its ascent.

“Liquidity around $105K is significant. A descent into that area could clear out late-positioned traders before the next upward movement,” he stated.

As Bitcoin holds critical price levels and sentiment remains cautiously optimistic, the groundwork appears favorable for ongoing upward movement, albeit with potential volatility on the horizon. If BTC manages to retain the $100K–$105K range and successfully reclaims $110K, the next surge towards new all-time highs may arrive sooner than anticipated. Currently, bulls are in command, though traders remain vigilant as international markets exhibit instability.

BTC Maintains Position Above Essential Averages

As Bitcoin trades at $108,249 on a 4-hour chart after its impressive rally to $112,000 earlier in the week, the chart indicates that BTC is consolidating above several key moving averages, including the 34 EMA ($108,046), 50 SMA ($106,840), and 100 SMA ($105,109), all trending upwards. These levels now function as dynamic support zones, which bolster a bullish short-term market structure as long as the price remains above them.

Despite encountering resistance near $112K, BTC has managed to avoid significant sell-off activity and continues to respect the mid-range levels from its recent breakout. The $103,600 level, highlighted as key horizontal support, is crucial, having previously served as a resistance barrier, providing a solid foundation for a potential correction.

Declining volume during this pullback phase indicates that selling pressure may be corrective, not a precursor to a trend reversal. If bulls maintain control above $106K and reclaim momentum above $110K, a retest of recent highs could be imminent.

At present, the 4-hour trend remains solid. Observers are keen to see if Bitcoin can sustain its position above the clustered support and continue to establish a base for future upward movement.