Key Insights:
- Significant buying interest has emerged below $105,000, suggesting a phase of market stabilization.
- More than 90% of Bitcoin’s supply remains well within profitable margins, indicating a sell-off driven by leverage rather than panic.
- A rebound to $117,500 could signal a shift from correction to bullish rally.
Bitcoin (BTC) is in a so-called “cleanup phase” as large buy orders consolidate below the $105,000 threshold following major liquidations. Trading resource Material Indicators noted that the order book displays considerable selling pressure on BTC, with minimal support at $107,000. Even if this level temporarily holds, it might not be enough to sustain market stability.
Bitcoin buy bids data
Bitcoin buy bids data by Material Indicator. Source: X
Expectations are that the buy orders will strengthen between $105,000 and $100,000. If the price drops below $105,000, it could refocus attention on the yearly opening at $93,500.
Blockchain analytics firm Glassnode confirmed that Bitcoin appears to be stabilizing after its recent downturn, remaining above the 135-day moving average. The analytics platform has stated that the Young Supply MVRV metric indicates that the market has cooled down from speculative highs, as newer investors no longer sit on significant profits, alleviating selling pressures.
Bitcoin young supply realized price
Bitcoin young supply realized price. Source: Glassnode/X
Glassnode also reported that the current market decline contrasts with past capitulation episodes; over 90% of Bitcoin’s circulating supply remains profitable, suggesting that most losses have been incurred by traders who bought in near the peak. In past market crashes, such as the FTX and Terra Luna failures, fewer than 65% saw profitability, indicating widespread panic. This downturn seems to be a consequence of leverage rather than collective panic selling.
Cointelegraph analyst Axel Adler Jr. observed that the reaction to this recent decline portrays a mature response to volatility, pointing to the surge in spot trading volumes reaching about $44 billion and futures volumes hitting $128 billion, while open interest fell by $14 billion. Notably, only around $1 billion of these positions represented forced liquidations.
In short, Adler implies that approximately 93% of the deleveraging was voluntary, suggesting a controlled decrease in leverage rather than a chaotic liquidation.
Will Bitcoin Reach $117,500?
As market conditions stabilize, Bitcoin’s price target of $117,500 becomes crucial for continued bullish momentum. A strong close and consolidation above this threshold could convert the recent correction into an upward momentum within the upcoming week.
Conversely, Bitcoin might persist in trading between $110,000 and $100,000 as it strives to establish a new support level. The recent low around $101,500 recorded on Friday could be revisited, preceding a more decisive range bottom above $100,000.
Bitcoin one-day chart
Bitcoin one-day chart. Source: Cointelegraph/TradingView
From a broader perspective, crypto trader Merlijn Trader noted that Bitcoin is revisiting its multi-year uptrend established since 2022, historically serving as a launchpad during prior corrective phases of the ongoing cycle. If it maintains this trend, it may indicate that the overarching bull market remains intact, with the latest downturn merely a mid-cycle reset.
Bitcoin weekly uptrend analysis
Bitcoin weekly uptrend analysis by Merlijn the Trader. Source: X
This article does not constitute investment advice. Every investment and trading activity carries risk, and readers should do their own research before proceeding.
