Bitcoin’s recent performance has seen the cryptocurrency cooling down to around $116,000 after an earlier rally following the Federal Open Market Committee (FOMC) meeting. Traders are now closely monitoring liquidity levels to anticipate the next market move.
Prominent analyst Kevin has recently shared insights on Patreon, indicating that Bitcoin is making an attempt to establish a cup-and-handle pattern on the 4-hour chart. However, he noted that momentum has faltered around the $118,000 mark, just shy of a significant Fibonacci level at $118,300. The current market trends are being affected by low spot volume and decreasing liquidity, which have contributed to a more stationary price action.
Kevin emphasized a critical price range between $106,000 and $118,300 that traders should keep an eye on. He outlines two potential scenarios:
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Bullish Scenario: If Bitcoin breaks above the $118,300 resistance, it could target levels between $120,000 and $125,000.
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Bearish Scenario: Conversely, a breakdown could lead to a decline towards the $104,000 to $100,000 range.
Liquidity heatmaps reveal that there is short liquidity concentration up to $119,000, while long liquidity is clustered between $106,000 and $108,000. September has historically treated Bitcoin well, showing stronger performance than previous years. However, with the current decline in liquidity and a volatile upward trend, traders are cautioning that the market could be nearing a crucial turning point.
The $118,000 resistance and $106,000 support zones are anticipated to play pivotal roles in defining Bitcoin’s next decisive move.
In a post on X dated September 19, Kevin also provided a bullish outlook, stating that Bitcoin has increased by 24% this year without showing any signs of a cycle-top behavior. He predicts that the peak could arrive in the October-November timeframe, coinciding with the halving event, although he added that current indicators do not strongly support this.
Further insights from Castillo Trading suggest that both Bitcoin and Ethereum are experiencing a “slow trade” following the FOMC meeting. They propose that the forthcoming weekend could be a critical test of market robustness. Similarly, analyst Altcoin Sherpa characterized the current market behavior as a “slow pullback” amidst a general climate of weakness, although he continues to hold long positions while remaining prepared to adjust his strategy if the market moves downward.
Traders and analysts alike are awaiting the outcome of this tug-of-war around the key price levels as Bitcoin navigates its next steps amid fluctuating market conditions.
