Bitcoin's price recently experienced a dip, attracting buyers, but technical charts are signaling a potential price plunge to $106,000. This situation highlights a battle between bulls and bears in the cryptocurrency market.

Several factors are contributing to this market dynamic. According to Cointelegraph, retail and whale-sized traders have been buying into the dip, which has helped to slow down the sell-off. However, bears still have a strong possibility of exploiting long liquidations, potentially driving the price down to $106,000.

On Monday, the crypto market experienced a significant single-day liquidation of long positions, totaling $1.62 billion. As the market attempts to recover, analysts from Glassnode suggest that the Bitcoin bull market might be entering its "late-cycle phase". Despite Bitcoin briefly holding above $112,000, data indicates that sellers continue to dominate the price action, increasing the likelihood of a deeper sell-off.

Further analysis of market dynamics reveals a tussle between buyers and sellers. Retail traders and whales have been increasing their leverage long positions since Monday's sell-off. However, liquidation heatmaps indicate that the price is consuming underlying bid liquidity, with a substantial cluster sitting at $107,000.

Despite the current appetite from buyers, the bulls are not yet out of danger. The lack of aggression in spot and perpetual futures volumes is preventing a lasting trend reversal, as sellers continue to sell into price rebounds. Bitcoin bulls are currently struggling to maintain the $112,000 level.

Federal Reserve Rate Cut Fails to Lift Bitcoin Price Past $118,000. Anthony Scaramucci projects Bitcoin to skyrocket to $150k.

Overall, the Bitcoin market is exhibiting signs of uncertainty and volatility. While the dip has enticed buyers, technical charts and market dynamics suggest the possibility of a further price decline. Traders and investors should exercise caution and monitor the market closely for potential developments.