Bitcoin Surges Above $110,000 Amid Risks of $100,000 Retest
Bitcoin has surged above $110,000 but analysts caution a potential retest of $100,000. Key points include:
- Current resistance at $110,700, identified by analyst Ali Martinez.
- Multiple rejections at this level increase the risk of a decline to $107,200 or $103,000.
- Bitcoin's price compression phase since its peak at $124,500 on August 14 is breaking down.
- The "Fragility Zone" emerged below $112,000; dropping beneath $110,000 heightens market risk.
- Only 9% of Bitcoin supply is currently in loss, indicating less capitulation compared to past bear markets.
- Risk-Off Signal is easing, suggesting reduced panic selling despite ongoing downside risks.
- Stablecoin reserves on Binance are increasing, indicating potential buying power for future price movements.
As of now, Bitcoin trades around $111,400, having experienced notable volatility recently. The support range between $107,000-$105,000 is critical for preventing deeper corrections, while maintaining levels above $110,700 could strengthen bullish sentiment.