3 Things to Watch for Bitcoin
Bitcoin keeps climbing, approaching $110,000. The bullish trend looks strong, but warning signs are growing under the surface. Liquidity is tight, traders are very optimistic, and macroeconomic tensions are high. This week could be the moment prices break through or just seem to break out before falling back.
A trader cheers as they watch Bitcoin surge on their screen.
In short, Bitcoin is nearing $110,000, but a false move to $105,000 is still very possible. The technical indicators are positive, supported by a friendly macro environment, according to analyst Ryan Lee. Still, the market appears overheated, raising the chance of a quick price drop or short squeeze.
Bitcoin recently hit a weekly high of $109,240, pushing its value past $2 trillion and aiming for new records. But behind this calm, a trap could be forming near the $105,000 mark. This level is important because it has a lot of liquidity and lines up with the 50-day exponential moving average. CrypNuevo points out that:
The key liquidation level is around $105,200. If the price makes a false breakout to this level, combined with the moving average, it could be a good chance to buy.
Market makers often use these tactics—trapping confident traders, liquidating margin positions, and then reversing the trend quickly. At this stage, being careful can give traders an advantage.
A big breakout above the weekly resistance would push Bitcoin into a new phase of discovery. The charts clearly show buyers are in control. But it’s not just about technicals. Macro factors are also driving the move. Record high US stocks, a weaker dollar, and big government spending are all helping risk assets like Bitcoin.
Ryan Lee explains:
Bitcoin’s rise to nearly $109,000, just below its all-time high of $112,000, is pushed by strong macro support. Record US stock markets, an increase in the money supply, and large fiscal policies like the One Big Beautiful Bill Act are the main reasons.
In short, everything seems to be lining up perfectly. But that can also bring risk.
The derivatives market offers mixed signals. As Bitcoin’s price climbs, funding rates on Binance are dropping, showing traders are becoming more cautious. More traders are betting that prices will fall soon.
This mismatch could lead to a short squeeze. If Bitcoin’s price jumps past $110, short sellers could get caught off guard and lose big. This could push the price temporarily beyond expectations.
The Fear & Greed Index warns that traders are very greedy now. Confidence is high, but judgment may be slipping. This often signals a short-term top.
Bitcoin might only be $2,000 from a new high, but many believe the best move could come after a quick, sharp correction. That level of $105,000 might just be the final jolt needed before a bigger move.
For those waiting to buy, it’s best not to chase the price now. For others, locking in profits might be wise. Arthur Hayes predicts a dip back to $90,000 before Bitcoin prepares for a big rally.