Bitcoin (BTC) showed limited gains during Tuesday’s Wall Street opening, struggling to reclaim $113,000 amid bearish technical analysis forecasting new short-term lows near $109,000. Intense selling pressure is evident, confined by resistance at the all-time high ($118,000-$120,000) and a new support ceiling identified around $109,000.

Liquidity Constrains Movement, Short Narrative Persists

Analysis reveals Bitcoin is trading in a range squeezed by significant order-book liquidity zones. Data from Material Indicators highlighted a corresponding decline in buy-side orders above the current range, with $110,000 serving as a notable ceiling lacking substantial bid strength.

$109,000 emerges as new short-term target

Further confirmation comes from Glassnode, an on-chain analytics firm. Despite recent accumulation near previous highs, their analysis indicates the price gap between $109,000 and $116,000 is closing. They noted steady investor engagement over the past month and minimal distribution pressure above the recent $118k-$120k peak:

“Steady engagement and minimal distribution point towards these higher prices potentially acting as a long-term floor,” Glassnode observed.

The prevalent sentiment among technical analysts pushing the downward target emphasizes, “$BTC is going lower before it goes higher.” This thesis finds support in the perception of a significant short position overhang, as highlighted by “TheKingfisher” account viewing liquidity levels, though contrasting views on deployment exist.

Volatility Expected to Resume

Despite the prevailing range-bound structure, opinions differ on the possibility of a dramatic short squeeze. The traditional short squeeze narrative appears muted, though the potential for a price resurgence driven by long-term buying pressure or shifting institutional flows remains acknowledged by some analysts.

“Patience is required…” echoed by analyst Michaël van de Poppe, acknowledging the absence of a clear breakout and foreseeing “a big move” resuming once current consolidation ends.

Traders should brace for potential increases in volatility, the consensus suggests, waiting for decisive action above the current $116,000 resistance or below the $109,000 support level.