Panic is not a strategy, but preparation is. Bitcoin has slipped into a “mild danger zone” as profit-taking builds and momentum indicators cool, putting the spotlight squarely on the $108K–$112K region that many traders view as the next battle line. Whether this becomes a quick liquidity flush or the first leg of a deeper correction will likely shape capital flows, altcoin rotation, and Q4 positioning.

What’s Happening Now

Bitcoin’s recent rejection at resistance has shifted sentiment from euphoria to caution. Analysts tracking market structure point to the prior resistance shelf at $108K–$112K as potential support, while derivatives positioning suggests a possible liquidity sweep before any sustained trend resumes.

Why It Matters to Traders

- A clean test or “flush” into $108K–$112K could offer high-reward entries if buyers defend the level. - A decisive breakdown risks a broader de-risking across crypto, with BTC dominance and altcoin beta likely to swing sharply. - Seasonality matters: in prior bull cycles, late-summer drawdowns often preceded Q4 rallies, but only after weak hands are cleared.

Key Levels and Invalidation

- Primary spot to watch: $108K–$112K (former resistance turned potential support). - Acceptance signal: reclaim and hold above $112K on the 4H/1D with rising spot volume. - Invalidation for dip buys: a strong daily/weekly close below $108K or persistent funding/basis stress alongside falling spot bid.

Actionable Playbook

• Plan A: Buy the Flush — Ladder limit bids between $112K and $108K; tighten size; place hard invalidation below $108K. Avoid overleverage; expect wickiness.
• Plan B: Momentum Re-entry — Stand aside until BTC reclaims and holds $112K+ with rising volume/OBV and normalized funding. Target a rotation back to range highs.
• Plan C: Hedge, Don’t Hope — Protect spot with modest puts into Q4 or reduce delta via perps on strength. Keep hedge sizing proportional to risk tolerance.
• Alt Positioning — If BTC ranges, selective alts can bounce; if BTC loses $108K, expect outsized alt drawdowns. Reduce beta until BTC stabilizes.
• Watch These Cues — Funding and basis (flip negative then mean-revert), OI washouts near support, spot-leading perps, and visible liquidation clusters around $110K.

Historical Context

Past bull-market years often featured a “quick flush, then Q4 expansion”. Several KOLs echo that a deeper near-term dip could be the setup for the next leg higher—provided key supports hold and spot demand returns.

Risk Management First

- Predefine invalidation; do not move stops. - Use smaller size in chop; add only on confirmation. - Respect volatility around key levels; wicks are common during liquidity hunts.

Bottom Line

Treat $108K–$112K as the decision zone. Let price prove strength or weakness, align with the winning side, and keep risk tight. The next few sessions will tell whether this is a buy-the-dip opportunity or a signal to de-risk before Q4.

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