Bitcoin is currently under pressure as it struggles to maintain the $107,000 mark following a harsh sell-off that has resulted in losses amounting to billions, leading it to a low of just below $104,000.

Many in the market are questioning whether this downturn represents a natural correction or the beginning of a severe bear market.

The Bearish Argument: Fractals and Fear

On one front, bearish sentiments are escalating. Analyst Doctor Profit has issued a warning regarding a concerning 10-year fractal, emphasizing, “There is nothing to remain bullish in this market,” indicating the potential onset of a bear phase lasting until 2026. His complete analysis can be found here.

This pessimistic outlook is backed by the Crypto Fear and Greed Index, which has plummeted from a state of “greed” to “extreme fear,” currently standing at 22, the lowest reading since April. In total, over $1.2 billion worth of trades were liquidated, with long positions bearing the brunt of the losses.

Market analysts suggest that such high levels of fear may indicate either market capitulation or the beginning of substantial accumulation by larger investors.

Notably, the recent volatility has been attributed to various political events, such as President Trump’s statement regarding proposed tariffs on China, which caused prompt spikes in Bitcoin’s price, demonstrating its increasing sensitivity to global news.

The Bullish Response: Liquidity and Opportunity

Conversely, not everyone is accepting defeat. Macro analyst Ted Pillows asserts that a flow of liquidity from gold into Bitcoin could drive its value to $150,000, suggesting a revitalization of Bitcoin’s reputation as a “digital haven”. He stated, “The key question is whether gold liquidity will flow into Bitcoin. If people start seeing BTC as the better ‘safe haven’ now that gold looks overbought, then a run to $150K is very possible.”

Influencer Kyle Chassé, meanwhile, presents an even more ambitious forecast, envisioning a potential rise to $700,000 per Bitcoin amid expanding global liquidity.

As the situation stands, the stakes are high. Supporters of Bitcoin argue that it must defend the $105,000 zone, citing the possibility of a short squeeze that could see the price rebound toward $117,000 within hours. On the flip side, some, like investor Chris Burniske, warn that breaking below the crucial 50-week moving average near $100,000 could signify a more profound downturn.