Bitcoin Eyes $109,000 Range as Bulls Weigh Potential for Upside Liquidity and Increased Volatility

• Bitcoin bulls face resistance near $113,000, with upside liquidity possibly triggering a short squeeze.

• Short-term forecasts favor a dip towards $109,000 before any significant upward movement.

• Market volatility is anticipated to increase, requiring traders to exercise patience.

Bitcoin price targets $109,000 amid resistance and liquidity shifts; volatility returns soon. Stay informed with COINOTAG’s expert crypto analysis.

Why Is Bitcoin Targeting the $109,000 Price Level?

Bitcoin’s price action is currently constrained between significant liquidity zones, limiting upward momentum. BTC price targets $109,000 as data from market analytics reveal a lack of strong bid support above $110,000. This price floor aligns with previous all-time highs, suggesting a critical support area for investors.

How Does Liquidity Impact Bitcoin’s Price Movement?

Order-book liquidity analysis shows concentrated sell orders above $110,000, creating resistance for bulls. Meanwhile, recent buyer cost bases indicate steady investor engagement between $109,000 and $116,000. This liquidity dynamic could trigger a short squeeze if overhead shorts are forced to cover, fueling a potential price surge.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

What Are the Key Resistance Levels for Bitcoin Bulls?

Technical indicators highlight resistance at the 200-period simple and exponential moving averages on 4-hour charts. Bulls must overcome these to regain control and push prices higher. Failure to break these levels may result in continued sideways or downward movement.

What Does Expert Analysis Say About Bitcoin’s Volatility?

Crypto analyst Michaël van de Poppe emphasizes that Bitcoin’s current rangebound behavior signals an imminent increase in volatility. Traders are advised to remain patient as a significant price move is expected once the consolidation phase ends.

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

Bitcoin cost basis distribution heatmap. Source: Glassnode/X

Crypto long/short liquidation distribution as of Aug. 5. Source: TheKingfisher/X

BTC/USD 4-hour chart with 200-SMA, EMA. Source: Cointelegraph/TradingView

BTC/USDT 4-hour chart with RSI data. Source: Michaël van de Poppe/X

How Does Bitcoin’s Current Volatility Compare to Past Trends?

Frequently Asked Questions

What is causing Bitcoin’s price to target $109,000?

Bitcoin’s price is influenced by liquidity zones and resistance levels near $110,000, with investor cost bases suggesting $109,000 as a key support area before any upward movement.

When is Bitcoin expected to experience increased volatility?

Market experts indicate that after a period of consolidation and low volatility, Bitcoin is poised for a significant price move soon, requiring traders to be patient and prepared.

Key Takeaways

• Bitcoin targets $109,000: Liquidity and investor cost bases suggest this as a critical support level.
• Resistance near $113,000: Bulls must overcome key moving averages to regain upward momentum.
• Volatility returning: Consolidation signals a likely significant price move ahead, demanding trader patience.

Conclusion

Bitcoin’s price action is currently shaped by liquidity zones and resistance levels, with $109,000 emerging as a pivotal target. While bulls face challenges near $113,000, expert analysis anticipates renewed volatility soon. Staying informed and patient will be essential as the market prepares for its next major move.