Bitcoin Price Nears Critical Resistance Level of $118,000
Bitcoin’s price is approaching a crucial resistance level at $118,000, which aligns with the point of control of the current trading range. A break above this level could trigger a cascade of short liquidations, potentially propelling the price to new all-time highs. This development is significant, given the recent momentum driven by a bounce from the 0.618 Fibonacci retracement, which reclaimed the value area low and set the price on a path toward the $118,000 resistance zone.
Key Technical Points and Market Analysis
The Federal Reserve’s first rate cut of the year has ignited fresh optimism in risk assets, further supporting Bitcoin’s upside. With increasing derivative positioning at this level, a reclaim could spark significant volatility and initiate a short-squeeze scenario. The $118,000 resistance level is the point of control of the current trading range since $100,000 was tested, and it has concentrated volume and trading interest. The Fibonacci support, which initiated a bounce from the 0.618 retracement, confirms the bullish structure.
- $118,000 Resistance: Point of control of the current trading range since $100,000 was tested.
- Fibonacci Support: Bounce initiated from the 0.618 retracement, confirming bullish structure.
- Liquidation Cluster: Short liquidations stacked between $118,000 and $119,000 increase the probability of a cascade.
Derivatives Market and Liquidation Heatmap Analysis
The derivatives markets add another layer of importance to the $118,000 level. Liquidation heatmaps show a dense cluster of short liquidations beginning at $118,000 and extending toward $119,000. As more positions accumulate, the probability of a cascade increases if resistance is breached. A short squeeze in this zone could propel Bitcoin above the current trading range, potentially into new all-time-high territory. Such liquidation-driven moves often accelerate rapidly, as forced covering adds momentum to existing bullish flows.
BTCUSD (1D) Chart, Source: TradingView
BTC Liquidation Heatmap, Source: Coinglass
Expected Price Action and Conclusion
Bitcoin is primed for a decisive move as it approaches $118,000. Holding below this level may prolong consolidation, but a confirmed breakout and close above would likely trigger a liquidation cascade, accelerating the price into uncharted highs. As the market awaits this critical test, investors and traders are advised to monitor the situation closely, considering the potential for significant price movements. For more information and updates on Bitcoin’s price action, visit https://crypto.news/will-btc-price-hit-a-new-ath-as-118k-liquidations-pile-up/
