Bitcoin, $110,000 level precarious… "Weekend weakness likely to continue"

Bitcoin (BTC) is engaged in a tough battle above the $110,000 level, and analysts say weakness is likely to continue over the weekend.

On the 12th (local time), Cointelegraph reported that the current liquidation heatmap shows a large concentration of leveraged long positions clustered around the $98,600 range. This suggests the market still reflects high volatility and unstable sentiment.

Bitcoin's open interest has fallen noticeably, and in particular in the perpetual futures market traders were observed hesitating to enter new positions. According to on-chain data, global open interest for all virtual assets (cryptocurrencies) excluding Bitcoin and Ethereum (ETH) decreased by about 45%, with most exchanges recorded to have experienced large-scale contract liquidations.

Market experts say it is highly likely that the Bitcoin and altcoin markets will continue to be weak over the weekend. It is projected that 'soft selling' may continue until Sunday evening local time when CME Bitcoin futures and equity futures markets open.

How traditional financial markets react after the CME opens is expected to be a key variable in gauging the medium-term direction of this crash. Also, whether global open interest shifts to a rebound or shows stabilization will be an important clue in determining whether the market can attempt a new upside turn.

Meanwhile, on-chain analyst EndGame Macro diagnosed, "Before this crash, signals of excessive leverage and liquidity fragility had already been accumulating within the market," adding, "While short-term volatility expansion was inevitable, the possibility of a medium-term market recovery still remains."