Bitcoin just poked above the psychological line and now stalls beneath $112,000—while whispers grow that Binance is hoovering up coins in chunky 400 BTC prints. Is this a smart accumulation before a breakout or a setup for a liquidity sweep lower? Layer on Fundstrat’s Tom Lee warning that Bitcoin can still deliver a 50% drawdown even in a bull cycle, and you’ve got a market primed for fast, asymmetric moves.

What’s Happening Right Now

BTC briefly crossed ~$111,000 and trades near $111,590. Traders flag repeated, high-value wallet activity linked to Binance—a pattern that can indicate internal liquidity shuffling or deliberate inventory positioning rather than purely organic spot demand.

The near-term battlefield: resistance at $112,000, with a rejection risking a slide to the $110,000–$108,000 area. This zone aligns with recent support taps where liquidity has been building.

Why This Matters to Traders

- Strong ETF inflows (>$20B in 2025) don’t cancel Bitcoin’s DNA: violent mean-reversions. - Correlation to global risk remains high. If equity volatility pops, crypto often follows. - Exchange wallet churn before key levels can precede engineered liquidity hunts—swift wicks that punish overleveraged positions on both sides.

The Levels That Decide the Next Move

- $112,000: Acceptance above on a 4H close with rising spot-buying pressure tilts odds to a squeeze higher. - $110,000: Lose it on impulse and liquidity often magnetizes to $108,000. - $108,000: First deeper dip zone where responsive buyers may reappear.

Actionable Game Plan

• Set alerts at $112,000, $110,000, and $108,000; let price confirm before committing size.
• Track funding/OI: if funding is sharply positive and price stalls below $112K, risk of a long-squeeze into $110–108K rises.
• Watch on-chain and exchange data: net exchange inflows, large wallet movements tied to Binance, and order book depth around $112K.
• Execution discipline: scale entries; use stop-losses beyond local swing points to avoid getting wicked out.
• Hedging: consider protective puts or short-term collars into key event windows or equity volatility spikes.

Risk Management First

Stay nimble. If you’re long under $112K without confirmation, consider reducing leverage and tightening risk. If price reclaims and holds above $112K on strong spot flow, rotate to offense; if it rejects, look for controlled fade setups into $110–108K rather than chasing weakness.

Bottom Line

Let $112,000 dictate bias: acceptance above favors momentum continuation; failure opens a clean path to $110K and possibly $108K. In a market where even bulls admit to possible 50% drawdowns, your edge is trade selection, confirmation, and position sizing.

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