Bitcoin’s Next Move: Breakout or Deceptive Fakeout? 🚀💰

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Bitcoin, the digital currency that’s always on the edge of something-be it a cliff or a breakthrough-has been trading in a tight consolidation range. This leaves traders in a state of existential dread, wondering if the next move will be a strong breakout or a deceptive fakeout. After weeks of sideways price action, market participants are closely watching key support and resistance levels for signs of momentum. With sentiment shifting more often than a cat’s mood and trading volumes fluctuating like a teenager’s emotions, every move now carries the weight of a thousand elephants. In this delicate phase, BTC’s next direction could set the tone for the broader crypto market, making it a critical juncture for investors and traders alike. 🤔📊

Bitcoin Consolidating Within Major Liquidation Zone

The current price action seems to have compelled investors to create a safe cluster around the range, much like how you’d huddle under a table during a particularly intense game of hide-and-seek. The liquidation heatmap of Bitcoin shows the price trading between the liquidity cluster, which is accumulated between $112,100 and $112,300 and around $110,800. The bulls are failing to break the upper cluster, which is expected to drag the levels lower to squash the sellers. It’s like trying to climb a greased pole while wearing roller skates. 😅

On the other hand, the Open Interest has been consistently plunging from over $87 billion to close to $80 billion. This suggests the future traders are either not opening new positions or closing their positions. Now that money is flowing out of the market, signaling the beginning of the exhaustion phase, the BTC price is now believed to reverse the trend as well. Additionally, the Coinbase premium is also negative and the US inflation data is coming this week. With this, the Bitcoin price is expected to sweep the lower liquidity. It’s like a game of hot potato where everyone is suddenly allergic to potatoes. 🥔🚫

Will Bitcoin Price Test the Support at $108,000?

Although the price has rebounded from the local support at $107,300, the rally, in the wider perspective, remains consolidated within a descending channel. Meanwhile, the bulls are attempting to break the resistance and if they are successful in doing so, the price is believed to rise above $113,400, paving the way to test the higher targets. However, the current price action displays a diverse price action, indicating a potential pullback. It’s like trying to predict the weather in London-sunny one minute, raining cats and dogs the next. ☔🌧️

As seen in the above chart, the BTC price is trading within a descending parallel channel and is trying to break the upper resistance. Moreover, it is trading within the Ichimoku cloud, hinting towards an extended consolidation. A breakout followed by a retest hints towards a bullish confirmation; however, the chart pattern suggests the possibility of a rejection. It’s like a roller coaster that’s stuck at the top of the first hill, leaving everyone wondering if it’s going to plummet or just sit there forever. 🎢🤷‍♂️

The RSI and CMF are incremental, which is a bullish signal, but the previous pattern pushed the price lower after testing the resistance zone at $116,800, hinting towards a potential pullback to $110,000. Therefore, the next few days are pretty crucial for the Bitcoin price rally as a rejection before the breakout could activate the lower targets around $110,000 or lower. It’s a bit like waiting for a bus that’s running late-either it’s just around the corner, or it’s never coming. 🚍⏰

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2025-09-08 17:22