Bitcoin is currently growing under a huge selling pressure as a liquidity cluster forms near $107,000, raising the risk of sharp price swings. In contrast, the global crypto market cap slipped 0.52% to $3.89 trillion, with its total market volume also falling 10.54% to $163.97 billion, signaling weaker market activity.
According to CoinMarketCap, Bitcoin is trading at $112,565, down 0.48% in the past 24 hours. Its daily trading volume has dropped to $49.50 billion.
Heavy liquidity zones form below current price
Hyblock Capital, a trading platform, reported three key liquidity clusters below Bitcoin’s current price. These include $111,000-$112,000, $108,800-$109,000, and the largest at $107,000. “Growing liquidity acts as a magnet because it implies recent liquidity is building,” Hyblock stated.
Bitcoin hit a new all-time high of around $124,457 on August 14, but then took a sharp dive down to $111,000 this week. According to the Hyblock chart, which pulls data from Binance, Bybit, and BitMEX, the $110,000-$106,000 range is currently a key support area. If the price falls into this zone, it could lead to millions in liquidations and further push the price down.
According to Coinglass, most high-leverage positions, particularly those at 50x and 100x, are up between $110,000 and $114,000. While long positions that dip below $111,000 are at risk.
If Bitcoin takes a nosedive, those positions could unravel quickly. On the flip side, if it climbs above $114,000, there maybe a squeeze on shorts leading to a rally,
Sentiment signals more pain ahead
Social media mentions of “buy the dip” have spiked to a monthly high, data from Santiment revealed. Historically, this acts as a contrarian indicator. “Prices typically move in the opposite direction of the crowd’s expectations,” Santiment warned. This suggests Bitcoin may face more downside before a true rebound.
Meanwhile, global liquidity is expanding. Trader CryptoBusy noted on X, “Global M2 has reached a record high, signaling liquidity is back.” Institutions are primarily moving funds into Bitcoin, while altcoins lag due to weaker retail participation.
Bitcoin’s next move depends on whether it holds above $110,000 or dives toward $107,000. Growing liquidity clusters below the current price suggest heightened volatility ahead.
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