Bitcoin Holds Above $105K Amid High Leverage and Volatility

Bitcoin has maintained its position above the $105K price mark, despite the Distribution by Realized Supply metric indicating that BTC is relatively expensive compared to the investment of all holders. The 24-hour liquidation map of Bitcoin shows high leverage clustering around current prices, suggesting potential volatility. Key pressure points are identified above $108.8K and below $107.1K.

A strong weekly close above the resistance at $108.8K could trigger a liquidation avalanche of short positions, potentially leading to a new all-time high. Conversely, if Bitcoin drops below $107.1K, long positions are likely to be liquidated, adding downward pressure. The market is currently in a state of high leverage, with liquidity pools showing clusters of stacked positions that could be targeted and cleared, influencing short-term market movements.

Amid market tension, Aguila Trades re-entered with a 20x leveraged short position after Bitcoin dipped below the $108K mark. If BTC surges past the key liquidation level at $108.8K, Aguila’s short position could be at risk. However, if the price drops below $107.1K, it could validate the short setup and potentially trigger a broader correction, boosting Aguila’s profits.

Technical analysis suggests that a weekly close above $110K could act as a launchpad toward the Fibonacci extension level of $135,500. Historically, Bitcoin staged a strong rally in Q4 2024 following a decisive weekly close above $75,000. If this pattern repeats, a clear close above $107,720 could unlock upward momentum, first targeting $110K, and then potentially extending toward $130K.

If Bitcoin fails to break above $108K, it could face rejection and slide back toward the $92,000–$95,000 range. The repeated breakout-retest pattern has formed a bullish staircase structure, signaling market strength and confirming an uptrend. However, if BTC reaches new highs but fails to hold a weekly close above $107K, the short-term rally may lose steam, leading to an extended consolidation phase and limiting upside potential.

Overall, the price behavior in the coming weeks will be crucial in shaping Bitcoin’s direction for Q3 and sustaining bullish momentum. Traders should closely monitor these key levels as Bitcoin remains locked in a leverage war, with liquidity pools showing clusters of stacked positions that could be targeted and cleared, shaping short-term market movements.