Bitcoin Analyst Flags $105,000 as a Hidden Danger Zone That Could Trigger a Pullback

Bitcoin’s recent push toward new all-time highs comes with a warning: $105,000 may be a “danger zone”, where a combination of technical and on-chain factors could lead to a sharp correction if key support fails.

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🔍 Converging On-Chain Signals Raise Red Flags

Analyst CryptoMe highlights three indicators clustering dangerously around the $105,000 level:

1. UTxO Price Histogram Wall
   A large accumulation of unspent transaction outputs (UTxOs) lies between $105,600 and $149,200. This range represents cost-basis levels where many holders might choose to sell if prices fall back.

2. Short-Term Holder Realized Price
   The average entry price for BTC held for 1 to 3 months is around $106,000 — a segment of the market more likely to sell into weak rallies.

3. Inverse Head-and-Shoulders Neckline
   Technically, failure to break above the descending resistance between $113,000 and $115,000 could send Bitcoin back toward the $105,000 zone.

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⚠️ Derivatives Market Is Still Frothy

The futures market continues to show signs of overheating:

• Open Interest remains at multi-month highs, suggesting excess leverage.
• A drop toward $105K could trigger stop-loss cascades and forced liquidations, increasing volatility.
• Funding rates, while not extreme yet, have spiked during brief rallies — signaling fragile bullish sentiment.

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🔎 What Traders Should Watch

• $105K–$102.5K Support Zone
  This range may act as a key floor — or a bull trap. A decisive breakdown could invalidate recent bullish momentum.

• Open Interest & Funding Rates
  Watch for sudden drops in open interest or a flip to negative funding, which could signal capitulation.

• On-Chain Flows
  Increased outflows from exchanges to cold wallets may indicate stronger holder conviction, reducing retracement risk.

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📉 Final Thoughts

While this isn’t necessarily a bearish forecast, $105,000 is a critical inflection point.
A clean retest and rebound would strengthen the bullish case, but a failure to hold this level could trigger a deeper correction and shift the market structure in the weeks ahead.

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