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This Level Could Be Bitcoin’s Hidden Trap Where Volatility Erupts

This Level Could Be Bitcoin’s Hidden Trap Where Volatility Erupts

CryptopotatoCryptopotato2025/08/05 16:00
By:Author: Chayanika Deka

Bitcoin may revisit $105K, where metrics like short-term holder cost basis and UTxO walls indicate heavy exposure and potential stress.

Bitcoin has remained slightly in the red over the last 24 hours amid broad market caution triggered by uncertainty over advancing US trade tariffs. It is currently trading a little over $114K, but there is a potentially critical short-term price level for Bitcoin at $105,000.

In fact, a cluster of realized price metrics places this level as a short‑term risk zone for downside pressure.

Bitcoin’s Secret Danger Zone

Drawing on Unspent Transaction Output (UTxO) data and various cost-basis indicators, an analysis shared by CryptoQuant argues that this level could act as a hidden “danger zone” for leveraged traders.

Previously, a similar gap around $111,000 was identified and later partially filled when Bitcoin retraced to $111,800, thereby validating the methodology behind the analysis. Now, updated UTxO metrics point to $105K as another key price to watch.

According to the latest findings, a significant wall of realized transactions clusters tightly around $105,644, which suggests a large number of investors entered or exited positions at that level. Supporting this, Realized Price data for coins held between one and three months shows an average cost basis of approximately $106,000.

Meanwhile, the Short-Term Holder Realized Price, a metric for BTC held less than 155 days, comes in at $105,350, which further reinforces the same threshold. Although there is no way to predict with certainty whether Bitcoin will revisit $105K, the clustering of critical cost metrics in this zone suggests it could be tested again, especially during bouts of volatility.

This level does not imply a broader bearish shift, as the analyst maintains a bullish medium-to-long-term outlook. However, a dip to $105K could disproportionately impact futures traders with high leverage. This, in turn, can lead to liquidations and short-term dislocations.

The analyst stated,

“Because of that, it would be a smart choice for investors to be careful if the price moves down toward this level in the short term. They should try to lower the risk level of their positions and smoothen the volatility exposure of their portfolio.”

$105K Level Gains More Attention

Matrixport also highlighted the continued importance of the $105K level for Bitcoin, which aligns with its 21-week moving average. While it may be premature, or even overly bearish, to expect a test of this threshold, the firm considers it a reliable indicator of market trend: staying above suggests bullish momentum, while dropping below could imply a broader shift to bearish conditions.

Although potential capital rotation from altcoins could limit downside risk, Matrxiport warned users of an overly optimistic stance.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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