- Bitcoin slips below $107K support, eyeing $106.8K as the next potential liquidity target.
- Price action remains range-bound between $106.8K and $110.2K, signaling market indecision.
- Analysts warn of downside pressure due to over-leveraged long positions near current levels.
Bitcoin continues its short-term retreat, slipping below its daily support level of $107,052 and currently trading around $107,056. The asset has recorded a daily price drop of roughly 2.0%, extending the correction phase seen over the last few sessions.
Traders are closely monitoring the $106.8K region, which some believe could be targeted next due to leveraged positions in the market. As of the latest trading session, BTC is down by $1,280.28 or 1.18%, reflecting increasing sell pressure and cautious sentiment.
BTC Tight Range Amid Liquidity Pressure
According to market analyst James Wynn, market makers may attempt to push the price further down. This move would aim to liquidate over-leveraged long positions clustered near current price zones. He also mentioned that the area around $106.8K could serve as a liquidity target in the short term.
However, despite this downward pressure, activity on the lower timeframes shows a relatively tight consolidation just above the 13-day moving average. This moving average, currently near $107,176, has offered temporary support. The price has dipped just above that level but has yet to break it with force, keeping buyers and sellers in a brief standoff.
Range-Bound With Downside Bias
Resistance continues to hold at $110,269, a level that has rejected multiple upward moves in recent sessions. Traders are paying close attention to this zone, as any break above it would require strong buying momentum. Until then, the price remains trapped between that ceiling and a weakening floor.
The 24-hour trading range remains tight, highlighting continued market uncertainty. Volatility is notably lower than during previous price swings. Support is currently holding around $107,052, but a decisive break below this level could open the door for a move toward the $101,000–$100,000 zone. The short-term trend continues to favor downside until key resistance is reclaimed.
Bearish Signals Persist, but Traders Await Key Level Reaction
The RSI is sitting at 32.81, indicating that Bitcoin has entered oversold territory—a clear sign that bearish pressure remains dominant. Adding to this negative outlook, the MACD line continues to trend below the signal line, pointing to ongoing downside momentum in the market.
Despite the pullback, some traders remain confident, suggesting this move could be brief. Others are sitting out, avoiding exposure during this period of potential liquidation. As trading volume holds steady, Bitcoin’s next move will likely depend on how it interacts with both the $106.8K and $110.2K levels. Market participants continue to watch closely for a resolution.
