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What Happens to Bitcoin After $112K: Surge or Sell-Off?
Key Takeaways
Bitcoin is testing resistance at $109K–$112K within a rising channel.
Liquidity beneath trendlines could trigger a fake breakdown before a reversal.
A shakeout toward $99K may precede a breakout to $120K.
Bitcoin’s climb to nearly $112,000 on 22nd May 2025 marked a historic milestone. While the market celebrates this new all-time high, seasoned traders know that headlines rarely tell the full story.
All-time highs are not always signs of strength, they’re often the beginning of a new battle between bulls and bears. As we move deeper into uncharted territory, the real question isn't whether this level is significant, but what Bitcoin does next. Does it hold, surge, or finally give in to pressure?
ATHs Often Invite Volatility, Not Calm
Reaching $112K is undoubtedly a win for Bitcoin’s long-term trajectory, especially given how far the asset has come in just over a decade. It reflects the growing maturity of the asset class, stronger institutional presence, and deeper adoption globally.
But for traders, it’s more than a headline, it’s a signal. And often, all-time highs act more like traps than triumphs, luring in late buyers only to shake them out during the next wave of volatility. It’s not about celebration now; it’s about preparation.
Also Read: Bitcoin Skyrockets: 230,000,000% Return in 15 Years Shocks All
Price Structure: Rising Channel in Focus
A well-defined ascending channel is visible on the daily chart, with Bitcoin consistently respecting both the upper and lower trendlines since mid-April. This bullish structure reflects steady higher highs and higher lows, signaling continued strength from buyers.
The price is currently testing the upper resistance zone at $109,200 - $112,000. Support lies at $105,300, with a mid-channel pivot near $107,000. A breakout could target $120K, while a rejection may send BTC down to $99K - $95K.
However, the price is now testing the upper boundary of this channel, which often acts as resistance. Failure to break above convincingly could result in a channel rejection and a pullback toward lower support levels.
4H Chart: Liquidity is Lurking Below
Bitcoin has left liquidity zones exposed just below recent trendlines. Many retail traders see those trendlines as support, but in reality, they may act as bait. It wouldn’t be the first time price wicks below those levels, triggers stop losses, and then violently reverses.
These kinds of “fake breakdowns” are often engineered moves, and they tend to happen during times of peak euphoria, often triggered by some news story that adds urgency to the drop.
What the On-Chain Data Tells Us
Despite the risk of short-term volatility, the long-term fundamentals remain strong. Exchange balances are dropping, a sign that investors are moving BTC into cold storage rather than prepping for sales. Whale wallets are increasing, too; those holding 1,000+ BTC are accumulating, not distributing.
Still, the Put/Call ratio is at 1.22, suggesting more traders are hedging against downside as nearly $2.81 billion in options expiry. With the maximum pain point near $104,000, there’s a decent chance price dips briefly into that area before rebounding.
Technical Breakdown: The Case for a Shakeout
Bitcoin is currently holding within a rising parallel channel, with the top end acting as resistance near $109,200. The price has struggled to break above this level, suggesting weakening momentum.
Here’s what to watch:
Support 1: $105,300
Support 2: $99,000 - $95,000 (where the 50-day and 100-day EMAs converge)
Stronger Support: $90,000 (around the 200-day EMA)
The RSI has cooled to 65, which shows that the overbought pressure is easing but hasn’t flipped bearish yet. It’s the kind of setup that typically precedes a short-term pullback, especially one designed to flush out overleveraged positions before another leg higher.
Price Prediction: Short-Term Dip, Long-Term Higher
Short-term dip: Price could sweep into the $105K - $99K zone to clear out liquidity.
Reversal setup: If we see strong buying and structural changes on lower timeframes, a push back to $109K and then $112,500 is on the table.
Next target: If that resistance breaks, $120,000 becomes a very real possibility, but only after the shakeout.
Final Take: React, Don’t Predict
Bitcoin’s brush with $112K was historic but what happens now is more important than what just happened. This is a phase where the market resets, where weak hands are tested, and where the difference between patience and panic becomes costly.
Remember: price doesn’t owe you direction. It responds to liquidity, to fear, and sentiment. The best thing any trader can do right now?
Also Read: Bitcoin’s Next Move: Watch These Hot AI Tokens Surge Ahead
