Bitcoin (BTC) continues to hold firm above $105,000, but mounting leverage and liquidity clusters are creating intense pressure points in the market. With traders watching key levels around $108,000, BTC could be on the brink of a major breakout—or a pullback—depending on how the next few sessions unfold.

Volatility Builds as Liquidity Clusters Tighten

Recent data from Bitcoin’s 24-hour liquidation heatmap shows that significant leverage is stacked around key price levels. The highest liquidity zones are concentrated just above $108,800 and below $107,100. These areas are shaping up as critical battlegrounds for traders as the cryptocurrency attempts to find direction.

A strong move above $108,800 could trigger mass liquidations of short positions, potentially propelling BTC toward a new all-time high. On the flip side, a break below $107,100 may liquidate long positions, adding pressure to the downside and fueling short-term corrections.

This kind of leveraged positioning often leads to cascading price movements in either direction, depending on which side of the market breaks first.

Short Sellers Enter the Arena

Market tension was heightened after on-chain data revealed that prominent trader Aguila Trades re-entered the market with a 20x leveraged short position. This move came after Bitcoin briefly fell below $108,000, signaling an attempt to profit from a possible correction.

If Bitcoin surges past the $108.8K level, Aguila’s short position could be wiped out. However, if BTC is rejected and dips below the $107.1K threshold, the trade could pay off, reinforcing bearish momentum and potentially pulling Bitcoin back toward lower support levels.

These trades underline the high-stakes environment in which Bitcoin currently trades, with sharp swings likely in either direction based on liquidations.

Chart Patterns Point Toward $130K If Resistance Breaks

Technical indicators suggest that a strong weekly close above $110,000 could serve as the springboard for a new leg higher. In fact, such a move would mirror Bitcoin’s Q4 2024 breakout, when a decisive close above $75,000 set the stage for a rally that retested around $76,000 in early 2025.

If a similar pattern repeats, a weekly close above $107,720 could confirm bullish strength and push BTC past $110K. From there, analysts are eyeing the next Fibonacci extension level at around $135,500—a target that aligns closely with the much-anticipated $130K zone.

Reaching these levels would represent a major milestone for Bitcoin and potentially reinforce its dominance heading into Q3 2025.

The Risk of Rejection Still Lingers

Despite strong fundamentals and bullish patterns, Bitcoin’s path higher isn’t guaranteed. A rejection at or below $108K could halt momentum and drag BTC back toward the $92,000 to $95,000 range. This zone has acted as a key area of support and accumulation in the past.

The repeated pattern of breakout and retest has formed a staircase-like structure on the charts. This kind of setup usually suggests long-term strength, but also requires continued confirmation with strong closes above resistance.

If Bitcoin does break out but fails to hold a weekly close above $107,000, the rally may fizzle, leading to prolonged consolidation. This would dampen near-term bullish expectations, although it could also provide a healthy reset before the next big move.

Liquidity and Leverage Will Shape Bitcoin’s Q3

The interplay between liquidity clusters and leveraged positions will be critical in determining Bitcoin’s trajectory in the weeks ahead. With bulls and bears battling at key resistance levels, the coming days could set the tone for Q3.

If bulls manage to push BTC beyond $110K with strong volume, momentum could carry the price toward $130K and beyond. However, if resistance holds and long positions begin to unwind, a correction back into the $90K range remains a realistic short-term risk.

For traders and investors alike, the takeaway is clear: Bitcoin is at a pivotal juncture. Whether it climbs to new highs or stalls in consolidation, price action around $107K–$110K will provide the clearest signals of what comes next.