Bitcoin Faces $107K Support Challenge: Breakdown Could Trigger Further Downturn

Bitcoin has slipped beneath important support zones, leading experts to focus on the $107,000

as a possible base and the $112,000 mark as a key resistance area for near-term price action. The digital asset dropped more than 3% this week to $111,590, falling below both its 50- and 100-day simple moving averages (SMA). These averages have leveled off for the first time since April, signaling a more cautious outlook for bullish traders Bitcoin Buy the Dip Calls Surge but Liquidity Trends Point to USD107K as Potential Magnet [ 1 ]. Although social media sentiment remains optimistic, it is often interpreted as a signal to be wary. According to Santiment, mentions of “buy the dip” have reached a 30-day peak, reflecting retail enthusiasm but also cautioning that such crowd optimism can precede sharper declines Bitcoin Buy the Dip Calls Surge but Liquidity Trends Point to USD107K as Potential Magnet [ 1 ].

Liquidity studies highlight the importance of the $107,000 level. Hyblock Capital points to this price as the area with the highest concentration of liquidity, where dense buy and sell orders could attract price movement. These liquidity pools can help stabilize the market by absorbing trades, and traders often set buy orders around these points, reinforcing support Bitcoin Buy the Dip Calls Surge but Liquidity Trends Point to USD107K as Potential Magnet [ 1 ]. Smaller but growing liquidity pockets at $109,000 and $111,000 further underscore the market’s attention to these price bands.

Technical signals are sending mixed messages.

is currently trading close to $106,400, just under 5% below its record high of $111,900. The coin is moving within a downward channel, with $107,000 acting as the nearest resistance and $100,000 as a major support. If Bitcoin can break above $107,000, it may spark a rally toward $112,000, but a sustained fall below $100,000 could open the door to a deeper drop toward $92,000 Bitcoin Tests $107K As Bulls Eye Breakout To $112K [ 2 ]. On-chain metrics remain positive, with ETF inflows and coins leaving exchanges hinting at institutional buying, though profit-taking and broader economic uncertainty are dampening short-term optimism Bitcoin Tests $107K As Bulls Eye Breakout To $112K [ 2 ].

Experts stress that $107,000 is a pivotal level for Bitcoin’s short-term direction. Analysis from The Moon Show notes a bearish divergence on the 4-hour RSI and a rising wedge on the daily chart, both indicating a higher risk of a move toward $100,000 if support is lost. On the other hand, a strong recovery above $112,000 could reignite bullish momentum, with buyers aiming to surpass the all-time high. The weekly chart also shows overbought signals and bearish divergence, increasing the odds of a larger pullback if resistance is not overcome.

Traders are keeping a close eye on blockchain activity and liquidity shifts. Santiment’s contrarian indicators suggest that persistent retail optimism could result in forced selling at a loss, creating buying opportunities for those taking the opposite side once sentiment changes Bitcoin Buy the Dip Calls Surge but Liquidity Trends Point to USD107K as Potential Magnet [ 1 ]. Meanwhile, Hyblock Capital’s liquidity research shows that market participants are preparing for both a potential rebound at $107,000 and a possible test of lower supports, reflecting a cautious approach Bitcoin Buy the Dip Calls Surge but Liquidity Trends Point to USD107K as Potential Magnet [ 1 ].

The wider crypto market is still consolidating.

, for example, is struggling to reclaim the $2,500–$2,550 resistance range, with mixed technical signals and large holders’ activity raising the risk of a pullback Bitcoin Tests $107K As Bulls Eye Breakout To $112K [ 2 ]. Still, Bitcoin’s technical picture is seen as a leading indicator for the sector, and its ability to maintain key levels could influence risk appetite throughout the crypto space.

With Bitcoin nearing a crucial turning point, analysts advise traders to watch for confirmation at $107,000 and $112,000. A clear close above $107,000 may indicate renewed bullish strength, while a drop below $100,000 could trigger further declines. As macroeconomic uncertainty lingers and liquidity patterns evolve, the coming weeks will be vital in determining whether Bitcoin resumes its upward trend or enters a longer correction.