Bitcoin falls to $98K as futures liquidations soar: Should bulls expect a bounce?

Bitcoin has recently fallen to $98,000, primarily due to a surge in futures liquidations and a lack of significant buying interest from bulls. Following a drop to $100,700 earlier this week, Bitcoin’s price has struggled to gain traction, resulting in a weekly decline of approximately 3.5%. Market data indicates that long-term holders have sold over 815,000 BTC in the last 30 days, raising concerns about liquidity in the market.

Bitcoin's Price Struggles After Dropping to $100,700 Amid Liquidations

Bitcoin's current price trajectory has become increasingly concerning as it has failed to bounce back after hitting $100,700. Analysts are now focusing on the potential for further declines, particularly targeting the June 2025 lows around $98,000, should volatility increase. The lack of robust buying at key support levels has intensified scrutiny over the market's liquidity.

Liquidity Clusters Indicate Downside Pressure Building Near $98,000

Analysts monitoring Bitcoin’s liquidity map have noted a significant imbalance between support and resistance levels. A trader highlighted that a substantial cluster of liquidity is positioned below the local lows at $98,000 to $100,000. This observation aligns with a series of marginally higher lows established above this zone. While there are potential upside levels at $108,000 and $112,000, only the lower level appears actionable given the current market structure.

Repeated Support Retests Raise Structural Risk for Bitcoin

Bitcoin has now tested the support band between $102,000 and $100,000 for the fourth time since it was first established in May 2025. Frequent tests of the same support level often signal structural exhaustion, as they weaken buyer conviction and reduce available liquidity for buying. This trend increases the likelihood of a breakdown below these critical levels.

Dominance of Long Positions Amid Weakening Market Sentiment

Despite the concerning market conditions, data shows that long positions remain dominant, with 68.9% of global BTC orders leaning toward long on major exchanges. This indicates that many traders still have faith in the $100,000 support level. However, both daily and weekly charts suggest a softening at higher time frames, which may lead to a liquidity sweep toward $98,000, even as deeper order book support exists above the current price.

As the market navigates these challenges, traders are advised to proceed with caution. The ongoing situation underscores the importance of closely monitoring price movements and market sentiment.