Bitcoin Braces for Liquidity Squeeze as $107K Resistance Wall Solidifies

Bitcoin's next major test takes shape as a massive liquidity cluster forms at the $107,000 threshold.

The Liquidity Battlefield

Traders watch order books thicken around the psychological barrier—creating what analysts call a 'make-or-break' zone for BTC's next leg. Market depth charts show institutional-sized positions accumulating at this level, setting up a classic supply-demand showdown.

Pressure Builds Beneath the Surface

On-chain metrics reveal whales accumulating while derivatives markets flash caution signals. The convergence creates textbook conditions for volatility—either a violent breakout or rejection awaits. Trading volumes spike as speculators position for both scenarios.

Wall Street's predictable 'risk management' playbook looks increasingly outdated against crypto's liquidity dynamics—but they'll still take credit if prices surge. The digital gold narrative faces its sternest test yet at this altitude.

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.

Hello again 👋
Let's get straight to it. Where is the liquidity below?

– 111k-112k (small cluster, but growing)
– 108.8k-109k (larger cluster, and also growing)
– 107k (largest cluster).

*growing = magnet, because it implies recent liquidity is building. pic.twitter.com/8rrgwlYZCN

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. 

Also Read: OranjeBTC Becomes Brazil’s Top Bitcoin Holder with $385M Purchase