Bitcoin has broken past a critical liquidity zone, sparking speculation about its next major move.
According to CoinGlass data, liquidity has been heavily concentrated between $109,500 and $110,000, a range Bitcoin has now decisively breached.
The leading cryptocurrency extended has its recovery from a low of $109,993, reaching an intraday high of $112,107 early Monday. As at the time of writing this report, Bitcoin was trading at $112,777. This upward move pushes BTC beyond a zone that many traders have been watching closely, raising questions about whether the rally has enough strength to continue.
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On the daily chart, Bitcoin is retesting the $112,000 level after bouncing from the $107,000 support zone. The price currently sits just below the 100-day moving average (MA), which has flipped into short-term resistance. The Relative Strength Index (RSI) is hovering near 48, reflecting mild buying pressure but a lack of strong momentum.
For now, the $110,000 zone remains a pivotal level. If bulls can defend this area, Bitcoin could target $116,000 and potentially revisit its recent peak near $124,000. Conversely, failure to hold above $110,000 could trigger a drop toward $104,000, where a larger pool of demand exists.
Crypto analyst Lennaert Snyder noted:“If Bitcoin reclaims $112,500, we can start looking at the upside again. Rejecting $112,500 triggers shorts.” However, while some analysts predict an upside price movement for Bitcoin, others remain skeptical. Peter Schiff, co-founder of Echelon Wealth Partners, believes Bitcoin is more likely to fall below $100,000 than rally above $200,000.
“Markets are forward-looking. That’s why gold is up 10% ahead of expected rate cuts. Bitcoin’s failure to rally alongside gold should be a major warning sign,” Schiff said, highlighting Bitcoin’s underperformance compared to gold.
On-Chain Metrics Raise Concerns
Despite the recent price stability, Bitcoin’s network activity shows signs of weakening. Active addresses have been declining for months, suggesting reduced retail participation and slowing organic adoption. This indicates that short-term speculation, rather than genuine usage, is driving market activity.
Data from CryptoQuant analyst IT Tech reveals a sharp decline in Bitcoin whale balances. Total holdings have dropped below 3.36 million BTC, with a negative 30-day change. Long-term holders sold 241,000 BTC in the past month, and whales offloaded more than 115,000 BTC over the same period. Analysts warn that continued selling could push Bitcoin toward $95,000 or lower in the coming weeks.
Notably, Bitcoin Treasury Companies now collectively hold 1 million BTC, a record high. However, their buying momentum has slowed drastically. Strategy’s monthly purchases fell from 134,000 BTCin November 2024 to just 3,700 BTC in August 2025. Other treasury firms bought 14,800 BTC in August, down from 66,000 BTC in June.
Macro Catalysts in Focus
Traders are closely watching upcoming U.S. economic data, which includes: Consumer Price Index (CPI)release on Thursday and Jobs report on Friday. These reports could influence Federal Reserve policy, impacting liquidity and driving volatility in the crypto markets.
Future Outlook
Bitcoin’s path forward hinges on whether it can maintain strength above the $110,000 support zone. However, sustained whale selling and declining network activity remain bearish headwinds.
With key economic data set to drop later this week, traders brace for heightened volatility as Bitcoin tests its next decisive move.