Bitcoin News Today: Bitcoin Hovers Near $118,000 Amid Tight Bollinger Bands and Key Liquidity Clusters

Bitcoin remains confined in a narrow trading range near $118,000 as traders brace for a potential volatility squeeze. Recent price action has shown consolidation around this level, with technical indicators like Bollinger Bands contracting to their tightest levels in years, a setup often followed by sharp price swings [1]. The market is closely watching whether Bitcoin will break higher or dip further before resuming a more pronounced trend.

Liquidity clusters above $119,000 suggest that the market is primed for a potential upward move. Analysts such as Zen from WiseAnalyze have highlighted key resistance levels at $119,259, $120,300, and $123,300, with liquidity magnets stacked just above $119,812. If buying pressure remains strong, Bitcoin could test these upper levels in the coming days [1]. The volume on the recent dip has been notable, signaling strong demand from buyers. If this momentum continues, the price may push through multiple clusters at once [1].

On the downside, short liquidation clusters are heavily concentrated between $115,000 and $117,000, as noted by TheKingfisher. These levels act as potential triggers for a fast upside move, as traders’ stop-loss orders get hit [1]. A break above $118,580 could see Bitcoin testing near-term targets, with the broader $115,000–$120,000 range acting as a key battleground for liquidity and positioning [1]. Smart traders are closely monitoring how price interacts with these clusters to gauge the strength of the move.

Technical indicators also point to an imminent breakout. Cas Abbé observed that Bitcoin’s Bollinger Bands are at their tightest in years, a sign that a sharp price movement is likely to follow [1]. The daily RSI is attempting to break out of its downtrend, and recent dips have been swiftly absorbed by buyers. These signals suggest that any breakout—up or down—could happen soon, with traders waiting for confirmation from the July monthly close before placing larger positions [1].

Bitcoin currently trades at $118,477, up 0.08% over the last 24 hours but down 0.31% on the week according to CoinGecko [1]. Market sentiment remains cautious, with external factors such as macroeconomic conditions and regulatory updates still influencing positioning. For example, the anticipated White House crypto policy report has led to a more defensive stance among traders, reducing speculative activity as the market waits for clarity [2].

Analysts remain divided on the outcome of this consolidation phase. Some believe Bitcoin is setting up to test previous highs, while others warn that a lack of volatility could signal a potential correction if the anticipated breakout doesn’t materialize [1]. Given the compressed technical structure, any move—up or down—is likely to be swift and decisive.

The next key level to watch is $119,000. A break above this could reignite bullish sentiment and draw in more buyers, while a drop below $118,000 may trigger defensive positioning and a temporary pullback. With volatility at unusually low levels, the market is in a state of anticipation, waiting for the next move that could break the current equilibrium and set Bitcoin on a clearer path forward [1].

Sources:

[1] Blockonomi [https://blockonomi.com/bitcoin-traders-brace-for-a-volatility-squeeze-as-btc-price-hovers-near-118k/](https://blockonomi.com/bitcoin-traders-brace-for-a-volatility-squeeze-as-btc-price-hovers-near-118k/)

[2] Binance [https://www.binance.com/en/square/news/bitcoin-news](https://www.binance.com/en/square/news/bitcoin-news)