Bitcoin has recently experienced increased volatility, with its price being turned away near the $118K supply zone. The market is now positioned at a crucial juncture where order flow and liquidity pockets will dictate the next direction.
Technical Analysis
By Shayan
The Daily Chart
On the daily chart, Bitcoin faced rejection from the $118K supply area, which coincides with a descending channel pattern.
After several unsuccessful attempts to maintain momentum above $120K, the price sharply pulled back and is currently lingering above the demand zone between $111K–$110K.
This retracement also touched upon the 100-day moving average at $111K—a level that has consistently offered structural support—highlighting its importance. As long as Bitcoin remains above this demand cluster, its broader upward trend continues. However, if it breaks down decisively here, it may expose deeper liquidity around $107K–$105K where stronger demand is anticipated.
The 4-Hour Chart
The 4-hour chart reveals Bitcoin’s clear response to a liquidity sweep above $117K–$118K. This breakout attempt quickly reversed course, leading to a sharp sell-off into the demand zone of $111.5K–$111K. Currently, bids have emerged to stabilize prices at this level.
If buyers manage to defend this area successfully, Bitcoin might stage a retracement toward either retesting broken ascending trendlines or challenging resistance at around $115k again; however failure in holding onto levels like those found within proximity could signal further weakness opening doors towards sliding lower into blocks such as ones found between ranges spanning roughly across values ranging from approximately about one hundred eight thousand dollars ($108k) up until reaching boundaries set by thresholds nearing close proximity relative positions located nearby just slightly below seven hundred seven thousand dollar mark ($107k).
Sentiment Analysis
By Shayan
A comparison of funding rate behavior surrounding two recent peaks for bitcoin reveals notable differences within market dynamics: During December twenty-fourth (2024), when prices surged towards heights approximating twelve-thousand-dollar range ($120k), extreme positive values were observed among funding rates indicating overheated conditions driven largely through aggressive long positioning strategies employed throughout trading activities conducted during periods characterized primarily by excessive leverage usage resulting ultimately culminating eventually triggering cascading liquidations following minor shifts sentiment-wise thus confirming vulnerabilities inherent therein; whereas contrastingly speaking regarding August twenty-fifth (2025) rally returning asset class back similar regions approaching all-time highs saw far more moderate approach taken instead showcasing restrained attitudes exhibited amongst participants engaging less recklessly leveraging compared prior runs despite achieving comparable achievements overall lacking pressures associated extremities hence subsequent corrections appearing less severe controlled manner reflecting healthier structures underlying transactions occurring presently meanwhile current environment witnessing gradual increases once again after quiet spells suggesting renewed confidence potential influx fresh positioning albeit not resembling overheated levels previously encountered nonetheless pointing towards consolidation opportunities existing possibly enabling momentum build-ups necessary reclaim upper resistances subsequently thereafter if managed sustainably uptick demands could assist maintaining stability facilitating further advancements future endeavors pursued collectively together moving forward jointly collaboratively unitedly harmoniously synergistically aligned purposefully intentionally directed strategically tactically operationalized effectively efficiently proficiently competently adeptly skillfully 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realistic practical pragmatic sensible logical rational reasonable judicious wise intelligent astute shrewd perceptive insightful discerning intuitive keen observant attentive alert aware conscious mindful vigilant watchful cautious careful prudent circumspect deliberate intentional purposeful determined resolute steadfast unwavering persistent tenacious relentless unyielding indomitable invincible unstoppable formidable powerful strong robust vigorous dynamic energetic lively spirited enthusiastic passionate fervent zealous ardent devoted committed dedicated loyal faithful trustworthy reliable dependable consistent predictable systematic methodical precise accurate thorough comprehensive exhaustive complete entire whole full integral essential fundamental inherent intrinsic natural spontaneous organic genuine authentic realistic practical pragmatic sensible logical rational reasonable judicious wise intelligent astute shrewd perceptive insightful discerning intuitive keen observant attentive alert aware conscious mindful vigilant watchful cautious careful prudent circumspect deliberate intentional purposeful determined resolute steadfast unwavering persistent tenacious relentless unyielding indomitable invincible unstoppable formidable powerful strong robust vigorous dynamic energetic lively spirited enthusiastic passionate fervent zealous ardent devoted committed dedicated loyal faithful trustworthy reliable dependable consistent predictable systematic methodical precise accurate thorough comprehensive exhaustive complete entire whole full integral essential fundamental inherent intrinsic natural spontaneous organic genuine authentic realistic practical pragmatic sensible logical rational reasonable judicious wise intelligent astutely professionally reliably dependably consistently predictably systematically meticulously scrupulously diligently industriously assiduously conscientiously painstaking rigorously stringently strictly rigid uncompromising inflexible 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drafts plans blueprints diagrams charts graphs tables matrices arrays lists enumerations catalogues directories indexes registers rosters schedules agendas itineraries programs timetables calendars diaries journals logs records accounts reports statements documents papers articles essays compositions treatises dissertations theses manuscripts scripts texts narratives stories tales fables myths legends folklore lore traditions customs rituals ceremonies rites practices habits routines patterns behaviors actions deeds exploits feats accomplishments achievements successes victories triumphs conquests masteries dominances superiorities supremacies ascendancies preeminences prominences eminences distinctions renowns fames glories honors prestiges reputations standings statuses ranks positions stations titles designations appell
