Bitcoin faces a critical test near the $105,000 level, flagged as a hidden danger zone by multiple on-chain metrics.

This area aligns with key realized price data, including UTxO clusters and short-term holder cost bases.

Matrixport highlights $105,000 as a technical inflection point near the 21-week MA, urging caution despite a still-bullish long-term outlook.

Bitcoin (BTC) remains modestly lower in the past 24 hours, with jittery sentiment gaining traction across markets with re-emerging fears over U.S. trade tariffs.

At the time of writing, Bitcoin is trading at $115,166. Analysts are sounding alarm bells about a potential short-term point of vulnerability in the $105,000 region, an area that can be a trap for over-leveraged traders.

A Hidden Danger in Bitcoin’s Price Structure

New data and on-chain analysis indicate Bitcoin might see more downward pressure if it moves into the region of $105K. This level is identified as a “hidden danger zone” constructed upon a confluence of various main realized price metrics, foremost of which is Unspent Transaction Output (UTxO) data and cost-basis metrics.

Previously, such clusters within realized price levels have successfully identified salient retracement levels. One case in point was the gap surrounding $111,000 that Bitcoin touched briefly once it fell to $111,800, thereby substantiating the approach of the analysis.

Now, the most recent UTxO data is indicating the $105,000 level as the subsequent key level. That shows if Bitcoin corrects, once again, this area may be a magnet for the price action.

Taking a closer look, analysts note a significant amount of Bitcoin trading occurring near $105,644. That indicates a lot of investors purchased or sold at this point, which therefore represents a significant price area technically and emotionally.

Other validation comes in the form of coins stored for between a month and three months using Realized Price measures, which circulate at an average basis of about $106,000. Similarly, Bitcoin stored for less than 155 days, using the measure of Short-Term Holder Realized Price, has a similar average of about $105,350.

With so many of these signs bunched near the $105K level, professionals suggest this price can be a region of support with a near-term area of vulnerability if volatility picks up.

While a downward tick towards $105K could cause short-term volatility and involuntary liquidations, especially for short futures traders, the BTC perspective in the long run is still bullish, according to the CryptoQuant analyst.

Prudence is nevertheless still needed around this juncture, with the expert himself suggesting de-risking as well as capping exposure to surprising price moves.

Also Read | Bitcoin Price May Fall to $95000 as ETF Outflows and RSI Align

Bitcoin Trend at Risk as Analysts Urge Caution

The alert doesn’t end there. Matrixport, a major crypto financial services platform, has also identified the $105K mark as a significant technical area for Bitcoin. For the company, it closely corresponds with BTC’s 21-week moving average, a highly followed gauge for identifying the direction of the trend.

Matrixport clarified that even if it’s perhaps too soon for a return of this magnitude, any breakdown below could be indicative of a more significant change in market sentiment. Otherwise, any remaining above it should affirm the current bullish trend.

While Bitcoin’s resilience has been remarkable, Matrixport urged investors not to become complacent. The company commented that although capital rotation out of altcoins into BTC can buffer a decline, it still doesn’t eliminate short-term riskiness stemming from overconfidence or overleveraging.

Also Read | Bitcoin August Forecast: Crash Below $90,000 or Bullish Rebound Ahead?

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Filed under: Bitcoin - @ August 7, 2025 5:29 am