The will litecoin reach ,000cryptocurrency markets witnessed textbook volatility last week as Bitcoin weathered geopolitical storms before staging an impressive recovery. The flagship digital asset dipped below psychological support at $100,000 before surging over 5% within two trading days - a move that underscores the market's characteristic price swings.

With easing tensions in conflict zones, risk appetite has returned to digital asset markets. BTC has now notched four consecutive green candles since the weekly open, with Thursday's Asian session seeing a 0.4% advance that solidified positions above the crucial $108,000 resistance level.

Market technicians are closely monitoring the $108,200 threshold as the next critical test for bullish momentum. A sustained break above this level could open the path toward $110,000 resistance, with potential extensions toward $112,000 if buying pressure persists. The current price action suggests traders are cautiously optimistic about maintaining the uptrend.

Beneath the surface, however, concerning liquidity trends emerge. CryptoQuant's latest metrics reveal Bitcoin's average circulation has plunged to decade-low levels. Historically, such contraction in exchange activity signals either waning investor confidence or brewing supply constraints - both scenarios that could precipitate increased volatility.

The liquidity drought indicates the market remains in a consolidation phase despite recent price stability. Without clear directional conviction, both bulls and bears appear to be awaiting stronger macroeconomic cues or technical confirmations before committing to larger positions.

From a chart perspective, failure to conquer the $108,500 resistance zone could trigger profit-taking. Immediate support rests at $107,400 along the current trendline, with more substantial footing at $105,500 should downward pressure intensify. These levels will prove critical in determining whether the recent rebound marks the beginning of a sustained uptrend or merely a temporary relief rally.

Market participants should note that the current environment combines technical breakout potential with fundamental liquidity concerns - creating conditions ripe for either continuation or reversal scenarios. Prudent traders might wait for confirmation above $108,200 or below $107,400 before establishing significant exposure.