Bitcoin Price Analysis: Will BTC Drop Below $110K This Week?
Bitcoin has just lately confronted heightened volatility, with the worth rejected close to the $118K provide zone. The market now sits at a pivotal space the place order circulation and liquidity pockets will decide the subsequent directional transfer.
Technical Analysis
By Shayan
The Daily Chart
On the every day timeframe, Bitcoin was rejected from the availability zone at $118K, which aligns with the descending channel construction.
After a number of failed makes an attempt to maintain momentum above $120K, the worth retraced sharply and is now hovering above the $111K–$110K demand zone.
This pullback additionally examined the 100-day transferring common at $111K, a stage that has persistently offered structural assist, underscoring its significance. As lengthy as Bitcoin holds above this demand cluster, the broader uptrend stays intact. However, a decisive breakdown right here would probably expose deeper liquidity close to $107K–$105K, the place stronger demand is predicted.
The 4-Hour Chart
On the 4-hour chart, Bitcoin reveals the clear aftermath of a liquidity sweep above $117K–$118K. That breakout try shortly reversed, sparking a pointy sell-off into the $111.5K–$111K demand zone. For now, bids have stepped in to stabilize the worth at this stage.
If consumers efficiently defend this zone, Bitcoin might mount a retracement towards the damaged ascending trendline and even retest the $115K resistance. Conversely, failure to carry $111K decisively would affirm additional weak spot, opening the door to a slide towards the $108K–$107K demand block, the place important liquidity aligns with long-term assist.
Sentiment Analysis
By Shayan
When wanting on the funding fee conduct round Bitcoin’s two most up-to-date peaks, a transparent distinction in market dynamics emerges. In December 2024, when Bitcoin pushed towards the $120K stage, funding charges spiked to excessive optimistic values, reflecting an overheated market dominated by aggressive lengthy positions. This unsustainable stage of leverage created a setup the place even a small shift in sentiment might set off a cascade of liquidations, and the next sharp correction confirmed this vulnerability.
By distinction, the rally in August 2025, which introduced Bitcoin again to the identical area close to its all-time high, was accompanied by way more average funding charges. This restraint indicated that merchants have been much less reckless with leverage in comparison with the December 2024 run. The worth motion nonetheless reached related highs, however the absence of maximum funding stress made the correction that adopted much less extreme and extra managed, highlighting a more healthy market construction.
In the present atmosphere, funding charges have begun to rise once more after a comparatively quiet interval, signaling that consumers are steadily stepping again into the market. This improve doesn’t but resemble the overheated ranges of December 2024, but it surely does level to renewed confidence and the potential inflow of contemporary lengthy positioning. If managed inside sustainable bounds, this uptick in demand might assist Bitcoin consolidate above the $110K space and supply momentum for an additional try at reclaiming the higher resistance ranges.
The put up Bitcoin Price Analysis: Will BTC Drop Below $110K This Week? appeared first on CryptoPotato.
