Bitcoin buyers strong, charts warn of risks

Bitcoin is drawing attention as buyers step in during the latest dip, yet charts still warn of a possible price drop toward $106,000. Data indicates that Bitcoin is currently trading at a discount, encouraging retail and whale traders to accumulate, but risks remain.

Recent buying activity from both small and large investors slowed down the sharp decline, but bears still hold a chance to push the price lower. Spot and perpetual futures volumes show little aggression, preventing a true reversal, while sellers continue to unload during rebounds, making Bitcoin volatility high.

Bitcoin bulls are fighting to defend the $112,000 level after the market suffered its biggest single-day liquidation of long positions this year, worth $1.62 billion. Analysts now warn the Bitcoin bull cycle could be entering its later phase. Despite a temporary hold above $112,000, data shows sellers still dominate Bitcoin price action, keeping the door open for another dip.

Retail and whales have been adding leveraged long positions, increasing the struggle between buyers and sellers. With the bid-ask ratio narrowing, selling pressure seems to ease as Bitcoin attempts to consolidate between $113,000 and $111,000, although Bitcoin uncertainty remains.

Heatmaps reveal liquidity clusters near $107,000, suggesting that another round of liquidations may occur. Futures markets continue to dominate Bitcoin’s daily price movements, while open interest fluctuates between $46 billion and $53 billion. Buyers remain hesitant, leaving sellers with the upper hand, potentially pushing Bitcoin prices from $110,000 toward $106,000.

Meanwhile, long-term forecasts remain highly bullish. Matt Hougan, chief investment officer at Bitwise, predicts Bitcoin could reach $1.3 million by 2035. His projection rests on Bitcoin’s role as a store of value, its rising competition with gold, and institutional adoption supported by ETFs.

Hougan highlights three drivers for Bitcoin’s growth: rising government debt, favorable regulations, and easier Wall Street access. Bitcoin is no longer seen as a fringe asset, but as a key part of global portfolios.

The big question now is whether Bitcoin will truly rival gold as “digital gold” and capture a major share of the store-of-value market in the coming decade, with Bitcoin firmly in focus for both institutions and retail.