Bitcoin's potential recovery to the $117,000–$120,000 range is contingent on new capital inflows and clearer macroeconomic conditions, according to Bitfinex analysts. The cryptocurrency market has been impacted by a significant imbalance, with sellers outnumbering buyers by 2.5 times, largely due to ongoing U.S.-China trade tensions. This imbalance has led to a $1 trillion drop in market capitalization and $19 billion in daily futures liquidations. For Bitcoin to retest higher levels, it must maintain key support at $110,000. However, further gains are dependent on increased spot demand and the resolution of macroeconomic uncertainties, such as the U.S. government shutdown, which continue to weigh on market sentiment.