Bitcoin’s consolidation has been extended, with the price hovering around the $120K price range. A break below the $116K support is expected, likely pushing the price down toward the $111K region.
Technical Analysis
By ShayanMarkets
The Daily Chart
Bitcoin’s price consolidation continues just below its all-time high of $123K, hovering between the $116K and $120K levels. This price behavior signals an equilibrium zone, where buying and selling pressure are currently balanced, a sign that the market awaits a fresh catalyst.
Importantly, this range also aligns with the 0.5-0.618 levels of the Trend-Based Fibonacci Extension, adding further technical significance to the current resistance zone. Given the lack of strong bullish momentum, a deeper correction below $116K is likely, with the $111K zone emerging as the next key target.
The 4-Hour Chart
On the lower timeframe, BTC appears to be forming a bullish flag — a classic continuation pattern. Despite multiple rebounds from the $116K support, repeated testing suggests growing vulnerability.
These reactions have likely created a sell-side liquidity pool just below $116K, increasing the probability of a liquidity sweep followed by a bearish breakout. Should this support level fail, the asset could swiftly decline toward the flag’s lower boundary near $111K.
On-chain Analysis
By ShayanMarkets
The Binance BTC/USDT Liquidation Heatmap reveals a critical tug-of-war in the current market structure. Bitcoin’s price is currently trapped between two major liquidity clusters, with significant liquidation pools above $120K and below $116K.
These zones represent a high concentration of leveraged futures positions, making them prime targets for smart money and market makers seeking liquidity. A price move toward either level could trigger a cascade of liquidations, intensifying volatility and rapidly accelerating price action.
As a result, Bitcoin remains range-bound between these two zones until one side is taken out. A breakout above $120K or a breakdown below $116K will likely lead to a sharp, directional move, fueled by stop-losses and forced liquidations.
Traders should keep a close eye on these levels and prepare for potential whipsaw volatility once either threshold is breached.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
