Bitcoin Faces Critical $108K Weekly Close: Can Bulls Protect the Key Demand Zone?

Key Points:

• Bitcoin needs to secure a weekly close above $108,000 to maintain its long-term bullish demand area.

• Over $200 million in crypto liquidations occurred in 24 hours, reflecting heightened volatility.

• Altcoin markets continue to struggle, with many trading below post-FTX levels, weighing on sentiment.

Bitcoin Tests Investor Conviction Ahead of Crucial Weekly Close

Bitcoin’s price is once again at a pivotal juncture. Following a turbulent week marked by sharp swings and heavy liquidations, traders now eye the $108,000 level as the threshold that could determine whether the market preserves its long-term bullish structure. Despite the recent volatility, sentiment is showing signs of stabilization — but the coming days may test investor patience and conviction.

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD rebounding to local highs near $108,260, recovering from last week’s dip below $104,000. While the rebound offers temporary relief, analysts caution that the weekly close above $108,381 is critical to sustain the historical demand zone that has previously supported major bullish reversals.

Thin Order Books Amplify Volatility

According to crypto trader Daan Crypto Trades, the current market setup remains fragile due to “thin order books” following last week’s liquidation cascade. “Volatility is definitely high here due to the thin books post this massive market flush,” he noted on X (formerly Twitter).

The market’s fragility is underscored by the latest data from CoinGlass, which reported over $200 million in total crypto liquidations within a 24-hour window. This high level of forced selling and short covering has created a feedback loop of volatility, where low liquidity magnifies even minor price movements.

Despite this, both bid and ask liquidity appeared to thicken around Bitcoin’s price levels leading up to the weekly close — suggesting a cautious attempt by traders to stabilize the market after days of disorder.

Preserving the “Historical Demand Area”

Trader and analyst Rekt Capital emphasized the importance of Bitcoin’s ability to close above $108,381, a level that aligns with a key weekly demand zone that has historically acted as a launching pad for rallies. “Bitcoin is not far away from securing a positive Weekly Close above $108,381 to preserve the historical Weekly demand area (orange), despite the downside wicks below it,” he explained.

This area, long observed by institutional traders, reflects where long-term buyers typically step in. Losing it could open the door to deeper retracements toward the $100,000–$102,000 range — a zone that may test the durability of Bitcoin’s latest bullish cycle.

Altcoin Futures Signal Broader Market Strain

While Bitcoin battles to reclaim stability, altcoin markets continue to struggle. The Crypto Fear & Greed Index recently exited the “extreme fear” zone, yet underlying sentiment remains fragile.

Analyst Luke Martin, host of the STACKS podcast, highlighted the persistent underperformance of alternative cryptocurrencies as a drag on overall sentiment. Citing data compiled by Robuxio’s Chris Jack, Martin noted that the top 50 Binance altcoin futures are now trading below their post-FTX crash levels.

“This chart perfectly illustrates why sentiment is bearish or tired even though Bitcoin remains above $100K,” Martin observed, adding that the lack of participation from altcoins underscores investors’ cautious risk appetite despite Bitcoin’s relative resilience.

The Road Ahead: Balancing Fear and Opportunity

As Bitcoin approaches its weekly close, market participants face a complex psychological mix of cautious optimism and residual anxiety. On one hand, the technical setup remains intact if the $108K threshold holds; on the other, sustained volatility and weak altcoin breadth suggest the rally’s foundation remains delicate.

Institutional interest and macroeconomic developments — including U.S. inflation data and liquidity flows — will likely shape Bitcoin’s next move. For now, traders are watching the charts with precision, aware that this weekly candle could mark a defining moment for the digital asset’s short-term trajectory.