Bitcoin integration has been extended, with prices above the $120,000 price range. A break is expected below the $116,000 support, and could push prices down to the $111,000 region.
Technical Analysis
Shayan Market
Daily Charts
Bitcoin’s price integration continues at a level of $116,000 and below its all-time high of $123,000. This price action indicates the equilibrium zone where trading pressure is currently balanced. This shows that the market is waiting for fresh catalysts.
Importantly, this range also coincides with the 0.5-0.618 level of the trend-based Fibonacci extension, adding even more technical importance to the current resistance zone. Given the lack of strong bullish momentum, deeper fixes under $116K are likely, with the $111K zone emerging as the next important target.
4-hour chart
In the lower time frame, the BTC appears to form a bullish flag – a classic continuity pattern. Despite multiple rebounds from $116,000 support, repeated testing suggests an improved vulnerability.
These reactions likely resulted in liquidity pools for sale below $116K, increasing the probability of liquidity sweep, followed by an increase in bearish breakouts. If this level of support fails, the asset could quickly decrease, approaching $111K towards the lower boundary of the flag.
On-Chain Analysis
Shayan Market
The Binance BTC/USDT liquidation heatmap reveals a significant tug of war in the current market structure. Bitcoin prices are currently trapped in two major liquidity clusters, above $120K and below $116K.
These zones represent a high concentration of leveraged current positions and are the main targets of smart money and market makers seeking liquidity. Price movements towards either level could cause a cascade of liquidation, strengthen volatility, and accelerate price action quickly.
As a result, Bitcoin remains bound to range between these two zones until one side is taken out. A breakout above $120K or a breakdown below $116K could lead to sharp, directional movements fueled by stop losses and forced clearings.
Traders should focus on these levels and be prepared for potential whipping volatility if any threshold is violated.
