Bitcoin is trading at $105,905 after forming a bullish “double bottom” technical pattern over the weekend. This pattern, identified by analysts, suggests a potential target near $110,000. However, the Bitcoin pullback risk is high due to technical and liquidity factors that could postpone the rally.
The bullish pattern consolidated after BTC repeatedly tested the $100,000 zone. This support was established between $98,100 and $102,000, creating a solid base. Following the breakout, the cryptocurrency faces its next barrier. On-chain data shows the key resistance is near $108,500. This level represents the cost basis for the 85th percentile of investors. Historically, this group often sells to break even, stalling rallies.
Is Capital on the Sidelines Waiting for a Dip Before Entering?
The main short-term hurdle is a pending “CME gap.” This gap is located between $103,100 and $104,000. CME gaps refer to the price difference between Friday’s close and Monday’s open on the Chicago Mercantile Exchange. Traders often “fill” these gaps. This suggests that BTC could briefly pull back to $104,000 before resuming its uptrend.
Selling pressure also comes from short-term holders (STHs). Recent data shows a 40% increase in STH inflows to exchanges since September. The realized price (cost) for this cohort is $112,000. This means many short-term holders are currently underwater (at a loss). Therefore, they might sell into any rally to minimize losses, creating instability.
On the other hand, sidelined liquidity shows bullish signs. The “Stablecoin Supply Ratio” (SSR) has dropped to 13.1. This is one of its lowest levels in 2025. A low SSR indicates that stablecoin reserves (buying power) are high relative to Bitcoin’s market cap. This capital is awaiting a clear signal. Analysts suggest BTC could retest $101,000–$102,500. The market waits to see if the Bitcoin pullback risk materializes before this liquidity enters the digital economy.
