Bitcoin News Today: Bitcoin Faces Potential $117K Rebound or $98K Bearish Breakdown

Bitcoin’s recent price fluctuations have intensified debates over potential market traps, with traders and analysts outlining contrasting scenarios for the coming weeks. Crypto trader KillaXBT has highlighted two primary trajectories: a liquidity-driven rebound from the $117,000 level and a possible bearish breakdown if key supports fail. These scenarios underscore the volatile nature of Bitcoin’s short-term dynamics, as traders navigate conflicting signals and liquidity hotspots.

KillaXBT’s first scenario suggests Bitcoin could test the $117,000 threshold this week, executing a sharp rebound to trap short-sellers and weak longs. This pattern, often termed a “liquidity hunt,” involves a controlled pullback to clear out stop-loss orders, enabling a subsequent surge in price. The trader notes that last week’s dip to $115,800 may have already initiated this move, with the $117,000 level acting as a critical magnet for price action [1]. If successful, this strategy could set the stage for a broader upward trend, provided Bitcoin maintains above recent lows.

However, the second scenario presents a steeper risk: a rapid rise to $120,000–$121,000 followed by a sharp reversal, potentially luring late buyers into a “bull trap.” KillaXBT warns of a “danger zone” between $119,300–$119,700, where resistance could trigger a sell-off to fill the $117,000 gap. A failure to hold above this range could erode momentum, forcing Bitcoin back into consolidation or even a deeper correction [1]. As of Monday, Bitcoin traded near $118,909, suggesting mixed investor sentiment.

Additional analysis from external sources complicates the outlook. A separate report cautions that Bitcoin must remain above $98,000 to avoid a prolonged bearish phase, with a breakdown below this level potentially accelerating a drop to $89,000 [2]. While KillaXBT’s focus is on the $117,000–$121,000 range, this broader bearish scenario highlights the fragility of Bitcoin’s current position. Meanwhile, technical indicators like the tightening wedge pattern near $118,782 point to a 68% probability of a bullish breakout, according to another analyst. This pattern, historically associated with trend continuation, could validate a push above $120,000 if liquidity conditions cooperate [3].

The interplay of these scenarios hinges on Bitcoin’s ability to manage short-term volatility without undermining its long-term narrative. A liquidity-driven rebound from $117,000 could align with the wedge pattern’s implications, reinforcing a bullish case. Conversely, a breakdown below $98,000 would likely trigger a cascade of bearish outcomes, including renewed pressure on key psychological levels like $90,000 and $85,000.

Market participants are also monitoring macroeconomic signals, such as Federal Reserve policy decisions and global risk sentiment, which could amplify either scenario. While technical indicators like volume and RSI remain relatively neutral, the absence of major fundamental shifts keeps the door open for either outcome. Analysts stress that the next two weeks will be critical in determining Bitcoin’s trajectory, with the $98,000–$118,782 range acting as a litmus test for investor confidence.

For now, the market remains in a delicate balancing act, with traders navigating conflicting signals. A successful breakout above $118,782 would validate the bullish case, potentially setting the stage for a retest of historical highs. However, a prolonged consolidation below $117,000 could erode momentum, forcing a reassessment of long-term expectations. The coming days will likely clarify which path the market chooses, as liquidity dynamics and investor psychology converge to shape Bitcoin’s next move.

Source: [1] [title1: Is Bitcoin Planning a Trap Again? Two Possible Scenarios For BTC!] [url1: https://coinpedia.org/news/is-bitcoin-planning-a-trap-again-two-possible-scenarios-for-btc/]; [2] [title2: Bitcoin Must Stay Above $98K to Avoid Bearish Breakdown ...] [url2: https://www.ainvest.com/news/bitcoin-news-today-bitcoin-stay-98k-avoid-bearish-breakdown-experts-warn-2507/]; [3] [title3: Bitcoin's Tightening Wedge Pattern Points to 68% Bullish ...] [url3: https://www.ainvest.com/news/bitcoin-news-today-bitcoin-tightening-wedge-pattern-points-68-bullish-breakout-82b-inflows-surge-2507/]