Analysts point to $105K as a key level where Bitcoin could see increased market risk.
- Bitcoin metrics show pressure building near the $105,000 level.
- High open interest suggests possible price swings ahead.
- Analysts advise caution for leveraged traders.
Bitcoin Trades Between Support and Resistance
Bitcoin is struggling to break out of its current price range. After touching support levels around $112,000, it is now pushing up against a resistance trendline. The next target is $115,700 if momentum continues. But a deeper risk lies below, at around $105,000, according to data.
$105K Identified as a Hidden Risk Zone
Analyst CryptoMe says the $105,000 area could be a danger zone. Several onchain metrics point to heavy trading activity and historical buying here. This includes:
- UTXO Cost Basis Histogram – big support at $105,644
- 1–3 Month Holder Realized Price – near $106,000
- Short-Term Holder Realized Price – close to $105,350
This means many investors bought BTC around these levels. If prices fall to this zone, panic selling could increase, especially for short-term traders.
Elevated Open Interest Raises Market Concerns
Bitcoin’s open interest (OI) stands at $79 billion, according to Hyblock Capital. High OI often hints at excessive speculation. When prices fall suddenly, traders using leverage can be liquidated quickly, creating sharp price drops.
That’s what happened on July 16. Bitcoin dropped from $120,000 to $112,000 after the market reached peak greed. The Fear & Greed Index is back to neutral, but risks remain.
Resistance Above, Weak Support Below
More data from Glassnode shows resistance around $117,000. That’s where a lot of BTC moved in the past. Below that, there is little support until $108,000, making the area between $105,000 and $113,000 fragile. If the price slips, it could fall fast.
Short-Term Caution, Long-Term Optimism
Analysts remain bullish in the long run but warn of short-term risks. Axel Adler Jr. notes that bearish sentiment in the futures market hit –7.5% on July 29. It has improved slightly but not enough to remove near-term threats. A sudden bad news event could still lead to bigger losses.
Source: cointelegraph.com
