Bitcoin weekly close must hit this $108K+ level to rescue key ‘demand area’

Bitcoin at a Crossroads: The Critical Weekly Close

The cryptocurrency market is holding its breath as Bitcoin approaches a pivotal weekly close. After a turbulent week that saw prices dip below the $104,000 mark, a battle is brewing between bulls and bears. The outcome hinges on whether Bitcoin can reclaim a crucial price level, a move that could either rescue the current bull market structure or signal further pain ahead.

All eyes are on the $108,400 price zone. According to market analysts, securing a weekly close above this threshold is essential for maintaining a historically significant area of demand. A failure to do so could open the door for sellers to push the price lower, while a successful reclaim would be a powerful statement of strength from buyers.

Thin Order Books Fueling Extreme Volatility and Liquidations

The recent price action has been anything but calm. The market is currently experiencing heightened volatility, largely due to what traders refer to as “thin order books.” Following a massive market flush that washed out many positions, there is less liquidity—fewer buy and sell orders—on exchanges. This environment means that even relatively small trades can cause significant price swings in either direction.

This volatility has had painful consequences for leveraged traders. Over the past 24 hours alone, the market has witnessed over $200 million in total crypto liquidations. This cascade of forced position closures adds to the selling pressure and contributes to the chaotic price action, creating a feedback loop of volatility that analysts expect to continue for a while.

Key Market Indicators to Watch:

• Critical Support Level: A weekly close above ~$108,381 is needed to preserve the historical demand zone.
• 24-Hour Liquidations: Over $200 million, indicating high levels of forced selling.
• Market Conditions: Thin order books are amplifying price movements.

Why Is Market Sentiment So Low? The Altcoin Problem

Despite Bitcoin holding a price level that would have been considered astronomical just a year ago, overall market sentiment remains stubbornly bearish. The Crypto Fear & Greed Index, a popular sentiment gauge, recently climbed out of “extreme fear” but still sits at a low 29/100, indicating widespread anxiety among investors.

So, what’s causing this disconnect? The answer lies in the struggling altcoin market. While Bitcoin has shown relative resilience, many alternative cryptocurrencies have been bleeding value. One analysis of the top 50 altcoin futures on Binance shows a grim picture, with many traders still deep underwater since the last major bear market bottom sparked by the FTX collapse in late 2022.

This widespread underperformance in the altcoin sector is a major drag on the entire crypto ecosystem. It creates a feeling of fatigue and pessimism, even when Bitcoin itself is holding key support. For many participants, the health of the broader market is just as important as the price of BTC.

What’s Next for Bitcoin?

As the weekend draws to a close, the market is at a critical juncture. The Bitcoin weekly close must hit this <$108K+ level to rescue key ‘demand area’> and give bulls the momentum they desperately need. Traders will be closely watching whether buyers can step in to defend this line in the sand. The coming week promises to be an interesting one, with the potential for significant moves depending on where the candle closes.