Bitcoin’s latest price action continues to test investor confidence as the cryptocurrency struggles to recover from its recent drop.
After briefly dipping to around $100,700 on Wednesday, BTC remains down roughly 3.5% on the weekly candle.
The move is part of a wider trend that has seen long-term holders unload more than 815,000 BTC over the past month.
That level of selling has raised alarms among analysts who warn that lower liquidity pockets could drive Bitcoin toward the June 2025 lows near $98,000 if volatility accelerates.
The broader market is now watching how Bitcoin behaves around the critical $100,000 region, which has repeatedly been tested throughout the year.
Liquidity Mapping Shows Market Vulnerability
Crypto analysts following liquidity flow patterns say that Bitcoin’s current range is showing clear pockets of weakness.
Trader Daan Crypto noted that a “large cluster of liquidity sits below the local lows at $98,000–$100,000,” suggesting that if selling pressure increases, the market may gravitate toward that zone.
He also pointed to upside liquidity targets near $108,000 and $112,000 but stressed that only the first target is currently within realistic reach.
According to his assessment, whichever liquidity band breaks first could determine whether Bitcoin enters a sharp short squeeze or a capitulation-style flush.
This view is backed by several futures traders who say BTC is increasingly likely to revisit the lower end of its range.
Futures trader Byzantine General stated that Bitcoin “is likely to sweep the lows around $98,000,” citing repeated failures to break higher.
Data from CoinGlass supports this bearish tilt, showing nearly $1.3 billion in cumulative long leveraged liquidity concentrated around $98,000.
That figure has risen sharply since the beginning of the week, indicating that traders have layered bids just below current levels.
Repeated Support Retests Signal Structural Weakness
One of the more worrying indicators for market analysts is the consistent retesting of support between $102,000 and $100,000.
Bitcoin has now returned to that region four separate times since May 2025.
Each retest weakens buyers’ conviction and reduces the number of resting bids available to defend the support line.
Analyst UBCrypto said the latest bounce resembled a failed breakout attempt and added that the region is “not a level worth buying into” until Bitcoin shows a confirmed shift in momentum.
He argued that entering positions slightly higher is preferable if it means avoiding a potential breakdown.
Despite this caution, long-heavy positioning remains dominant among retail traders.
Hyblock Capital data shows that 68.9% of BTC orders on Binance still lean long, suggesting many believe the $100,000 level will hold.
However, the daily and weekly charts both show softening structure at higher time frames.
This has increased expectations that Bitcoin may eventually test the liquidity pool near $98,000 before the market finds a stronger footing.
Deeper order book support appears to sit just above Bitcoin’s current price, but analysts warn that the market could still be pulled into lower liquidity areas if sentiment deteriorates.
If selling from long-term holders continues and short-term traders remain overleveraged, Bitcoin may still face additional downside pressure before recovery attempts strengthen.
