Key points:

  • Bitcoin bulls face multiple resistances as price stays stuck, but some see upside liquidity sparking a short squeeze.

  • BTC price forecasts continue to see lower levels closer to $109,000 in the short term.

  • Volatility is all but guaranteed to return, and traders now need “patience.”

Bitcoin (BTC) struggled to hold $113,000 after Tuesday’s Wall Street open as analysis expected new lows.

Bitcoin Price, Markets, Market Analysis
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

$109,000 area becomes new BTC price target

Data from Cointelegraph Markets Pro and TradingView showed BTC price action wedged between areas of high order-book liquidity.

Room for movement was thus limited, and short-term forecasts favored further downside next.

“$BTC is going lower before it goes higher,” trading resource Material Indicators summarized in a post on X.

BTC/USDT order-book liquidity data with whale order volume. Source: Material Indicators/X

An accompanying chart of BTC/USDT order-book liquidity on the largest global exchange, Binance, revealed a lack of significant bid support above $110,000.

Continuing, onchain analytics company Glassnode eyed the cost basis of recent Bitcoin buyers, likewise suggesting that the area around old all-time highs could provide a BTC price floor.

“For $BTC, the airgap between $109K–$116K is gradually being filled on dips. The staircase pattern points to steady investor engagement over the past month,” it explained on the day. 

“So far, we see limited distribution from the $118K–$120K range, suggesting these holders are opting to hold through.”
Bitcoin cost basis distribution heatmap. Source: Glassnode/X

Not everyone was concerned about a more significant BTC price dip.

Analyzing liquidity, popular X account TheKingfisher stressed the allure of overhead asks.

“Look at $BTC – almost 70% of liquidations are shorts sitting above us,” part of an X post read alongside a chart of crypto long and short distributions. 

“That means there's a massive pool of fuel waiting to be gobbled up. Institutions love playing with these liquidity hotspots. We're watching for that flush.”
Crypto long/short liquidation distribution as of Tuesday. Source: TheKingfisher/X

Bitcoin volatility “on the horizon again”

Popular trader Daan Crypto Trades meanwhile eyed resistance in the form of the 200-period simple (SMA) and exponential (EMA) moving averages on four-hour timeframes.

Related: Bitcoin treasuries add 630 BTC while ETFs shed $300M as price ranges

“Bulls need to break this region to be back in control and start aiming for higher,” he argued.

BTC/USD four-hour chart with 200-SMA, EMA. Source: Cointelegraph/TradingView

Crypto trader, analyst and entrepreneur Michaël van de Poppe said that regardless, rangebound BTC price behavior would not last.

“Patience is required when it comes to $BTC. No breakout upwards, no breakout downwards,” he concluded Tuesday. 

“Volatility slowing down, which means a big move is on the horizon again.”
BTC/USDT four-hour chart with RSI data. Source: Michaël van de Poppe/X

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.