As Bitcoin dances around $107K, liquidity is tightening like a noose, and it might just snap. BTC is closing in on a critical inflection point, not just in price, but in positioning, psychology, and macro backdrop.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
The monthly and quarterly close is just hours away, and a $108K BTC is the line in the sand. It’s no longer about where Bitcoin goes, it’s about who gets blown out on the way.
Bitcoin’s Liquidity Walls Set the Trap
Right now, Bitcoin is drifting inside a liquidity vise. Below $107K, there’s a soft cluster of long liquidations, nothing major. But just above is a concentrated wall of short interest waiting to get blown apart.
Furthermore, data from cross-exchange order books shows a spike in short liquidation levels between $108K and $108.5K, a classic setup for a brutal short squeeze if price ticks even slightly higher.
Essentially, this means liquidity begets volatility, and volatility near major time-frame closes tends to detonate trapped positions. In this case, the shorts look overconfident, and vulnerable.
“Push past $107.5K and it gets violent,” one trader noted on X. That might be an understatement.
Is this a Trendline Retest or a Launchpad?
BTC/USD has now come full circle. It is testing the same key support that triggered the late-June bounce. This zone around $106K–$107K is acting like a springboard. The real question is whether it will hold long enough to build momentum for a true breakout.
Rekt Capital nailed the call: Bitcoin needs to clear the macro downtrend from May to enter fresh price discovery territory. That means this isn’t just noise — it’s a structural pivot.
If bulls hold the line and press through $108K, this isn’t just a scalp. It could be the start of the next leg toward $115K–$120K, dragging forced shorts along for the ride.
At the time of writing, Bitcoin is sitting at $107,496.
