Bitcoin News Today: Bitcoin May Revisit Lower Liquidation Zones Amid Unfilled CME Gap Near $114K

Bitcoin’s price action has entered a period of heightened technical significance as the cryptocurrency remains range-bound between $120,000 and $113,000, with analysts pointing to an unfilled CME gap near $114,300 as a potential catalyst for downward movement. The asset is currently sandwiched between two major liquidation clusters—upper resistance at $120,000–$121,000 and lower support at $113,600–$114,500—creating a structure that favors oscillatory trading over directional trends. Recent price behavior, including the formation of long wicks on the downside, has intensified scrutiny of these zones, with traders anticipating renewed liquidity testing in the near term [1].

The unfilled CME gap at $114,300 has emerged as a critical focal point for market participants. Historical patterns suggest that such gaps are often revisited within days to weeks, increasing the likelihood of Bitcoin retracing toward the lower cluster. This level’s proximity to the $113.8K midpoint—identified as a key liquidation trigger—further amplifies bearish potential. Analysts at COINOTAG note that filling this gap could accelerate downward momentum toward the $113.6K–$114.5K range, a scenario supported by recent price rejections at upper wicks and wick formations indicating renewed short-term volatility [2].

The market’s range-bound dynamics are reinforced by liquidity clustering at both ends. Upper resistance near $120K–$121K has repeatedly stymied upward progress, while the lower cluster serves as a magnet for renewed buyer interest. COINOTAG’s analysis highlights that traders should monitor volume spikes and price interactions with the $114.3K CME gap as potential harbingers of a breakdown. CrypNuevo’s commentary underscores the cyclical nature of such setups, where oscillations between clusters often dominate in the absence of strong macroeconomic drivers [3].

Short-term trading strategies have shifted to focus on liquidity zones and wick structures. The recent formation of a long wick following failed attempts to break above upper resistance has signaled caution among traders, with many adopting defensive positions ahead of potential retests of the $113.8K level. This price point acts as a psychological benchmark, potentially determining whether Bitcoin’s next move extends downward or rebounds toward the upper cluster. Analysts caution that the current indecision may persist for one to two weeks, during which volume and order flow at critical levels will be decisive [4].

Key indicators for the coming weeks include Bitcoin’s interaction with the $114.3K CME gap and the $113.8K midpoint. CrypNuevo emphasized that filling the gap could validate a bearish scenario, particularly if volume surges confirm renewed seller dominance. Conversely, a breakout above $120K would signal a shift in momentum, though such a move is currently improbable given the strength of upper resistance. Market participants are advised to maintain a cautious stance, with stop-loss orders strategically placed near critical liquidation levels [5].

The technical structure remains a double-edged sword for traders. While the lower cluster offers a safety net, the persistence of upper wick rejections suggests that downside pressure remains intact. COINOTAG’s experts reiterated that the absence of a clear trend increases the risk of false breakouts, urging traders to prioritize liquidity clusters over speculative longs. This environment, characterized by limited directional bias, positions Bitcoin for continued consolidation until one of the clusters exerts decisive influence [6].

Sources: [1] [title1] [https://en.coinotag.com/bitcoin-may-revisit-lower-liquidation-zones-amid-unfilled-cme-gap-near-114k/] [2] [title2] [https://en.coinotag.com/bitcoin-may-revisit-lower-liquidation-zones-amid-unfilled-cme-gap-near-114k/] [3] [title3] [https://en.coinotag.com/bitcoin-may-revisit-lower-liquidation-zones-amid-unfilled-cme-gap-near-114k/] [4] [title4] [https://en.coinotag.com/bitcoin-may-revisit-lower-liquidation-zones-amid-unfilled-cme-gap-near-114k/] [5] [title5] [https://en.coinotag.com/bitcoin-may-revisit-lower-liquidation-zones-amid-unfilled-cme-gap-near-114k/] [6] [title6] [https://en.coinotag.com/bitcoin-may-revisit-lower-liquidation-zones-amid-unfilled-cme-gap-near-114k/]