Bitcoin News Today: Bitcoin Trapped Between $120K and $113K Clusters as CME Gap Looms

Bitcoin’s price has been confined within a defined range between two key liquidation clusters—$120,000 and $121,000 on the upper end, and $113,600 to $114,500 on the lower end—according to technical analysis from CrypNuevo. This pattern suggests a lack of decisive momentum in either direction, with price action repeatedly testing historical resistance and support levels without breaking through them. The recent formation of a long downside wick has drawn attention as a potential indicator of further downward testing, particularly after prior instances of upper wick rejections stalled bullish progress last week. Analysts note that such wick structures often precede renewed liquidity testing, which could drive Bitcoin toward the lower cluster [1].

The market’s range-bound behavior is reinforced by the presence of two major liquidation clusters. The upper cluster, spanning $120K to $121K, represents a threshold where prior bullish attempts have faltered. Meanwhile, the lower cluster between $113.6K and $114.5K has emerged as a critical area of focus. CrypNuevo highlighted that Bitcoin’s price has historically oscillated between these clusters in similar setups, creating a short-term pattern of limited directional bias. A pivotal level within this structure appears at $113,800, acting as a midpoint that could influence the next phase of price movement depending on whether the upper or lower liquidity zones are engaged first [2].

A critical technical factor in the near-term outlook is an unfilled CME gap at $114,300. This gap, identified by CrypNuevo, remains open by a few hundred dollars and has historically acted as a magnet for price action. The proximity of this gap to the lower liquidation cluster strengthens the case for Bitcoin revisiting the $113.6K–$114.5K range if the upper cluster’s liquidity is cleared in the coming days. Market participants are monitoring whether this gap will attract price movement over the next one to two weeks, as its resolution could confirm the continuation of a bearish trajectory.

The absence of a strong trend underscores the current uncertainty in Bitcoin’s direction. While the formation of a long downside wick increases the likelihood of a retest of the lower cluster, the persistence of upper wick rejections indicates ongoing resistance to bullish momentum. This dynamic creates a scenario where traders must closely watch the interplay between the two clusters and the CME gap. CrypNuevo emphasized that the market remains dependent on past price activity for direction, with historical liquidity zones and technical levels playing a decisive role in shaping short-term outcomes.

Sources:

[1] [title1: Bitcoin Trapped Between $120K and $113K Clusters as CME Gap Looms] [url1: https://cryptofrontnews.com/bitcoin-trapped-between-120k-and-113k-clusters-as-cme-gap-looms/]

[2] [title2: Bitcoin Trapped Between $120K and $113K Clusters as CME Gap Looms] [url2: https://cryptofrontnews.com/bitcoin-trapped-between-120k-and-113k-clusters-as-cme-gap-looms/]