Bitcoin News Today: Bitcoin Trapped in $116K-$120K Range as Key $111K Support Tested Ahead of Breakout

Bitcoin’s price trajectory remains in a period of consolidation as traders assess key support levels ahead of a potential breakout. The cryptocurrency has been confined within a narrow range of $116,000 to $120,000, reflecting a balance between buying and selling pressures. This sideways movement coincides with increased capital flows into altcoin markets, suggesting a temporary shift in speculative interest [1]. Technical indicators, however, hint at emerging risks. A bearish divergence between Bitcoin’s price and the Relative Strength Index (RSI) signals waning bullish momentum, raising the possibility of a pullback toward the critical $111,000 support zone [1]. Analysts caution that a sustained break below this level could trigger a deeper correction, while its continued resilience would reinforce the broader bullish trend [1].

On shorter timeframes, Bitcoin’s 4-hour chart displays a classic bullish flag pattern, characterized by a series of higher highs and higher lows. A dynamic ascending trendline, currently near $114,000, has acted as a reliable support, with traders observing whether this structure holds [1]. A breakdown below this trendline could accelerate a move toward $111,000, where historical liquidity zones may absorb selling pressure. Conversely, a rebound above $120,000 would validate the ongoing consolidation and potentially reignite the uptrend [1].

On-chain data reveals divergent market behaviors between retail and institutional participants. Recent surges in small-sized futures positions indicate heightened retail engagement, particularly within the $116,000–$120,000 range. This activity contrasts with the absence of large-scale selling from institutional players, who have not offloaded positions despite the prolonged consolidation. Analysts interpret this as a sign of institutional confidence in the market’s long-term trajectory [1]. Historical patterns suggest such setups—where retail activity peaks and institutional inaction persists—often precede renewed bullish phases. The lack of panic selling among large holders further supports the view that the current phase is a healthy consolidation rather than a trend reversal [1].

The interplay between technical and on-chain signals underscores a pivotal juncture for Bitcoin. While short-term risks of a pullback to $111,000 remain, the broader structure remains intact as long as key supports hold. Traders are closely monitoring the consolidation range for signs of resolution, with the potential for renewed demand to drive prices toward uncharted territory once the current equilibrium shifts [1].

Source: [1] [Bitcoin Price Analysis: Is a Crash to $111K Imminent for BTC?](https://coinmarketcap.com/community/articles/6885060acd505a2fad82d4ae/)