Bitcoin Approaching Critical Support at 112K with Key Liquidity Levels as Trend Indicator

I believe that Bitcoin has dropped to a critical support level. For an extended period, there was heavy liquidation of longs between the 115k and 112k price range. With the recent decline, about 80% of these long liquidations have been cleared, and if the price hits around 112k again, all of these liquidations should be wiped out.

Another liquidation level appears in the 108k to 105k range. However, given that we are in an upward trend, it is more logical to expect the price to bounce back from long liquidations and react positively.

If, despite clearing long liquidations, the price cannot rally from the 112k level, it may indicate that the trend is weakening. Therefore, maintaining the 112k support and clearing out liquidity around this area is crucial for observing a bullish reaction.

This level is also the support point for the short-term upward trend. Protecting this zone adds extra significance to the overall technical outlook and could determine whether the bullish momentum continues or falters.