Bitcoin (BTC) Price Stalls Near Resistance—Breakout Toward $118K or Pullback to $115K Next?

Bitcoin price is currently consolidating near a critical resistance zone, hovering just below the $118,000 level after a strong upward move earlier this week. The price has shown resilience, with buyers stepping in on minor dips, but selling pressure remains evident around this range. A decisive breakout above $118,000 could open the door for another leg higher, while failure to hold momentum may trigger a retracement back toward $115,000 support. The next few sessions may decide BTC’s short-term trend direction.

Bitcoin Enters the Liquidity Zone

The BTC order book heatmap from Coinglass currently shows a notable concentration of liquidity between $116,200 and $116,500, signalling a critical zone for traders to watch. When liquidity clusters in a tight range, it often acts as a magnet for price action, pulling BTC toward that level. If these are primarily buy orders, this range could serve as a strong support zone, where buyers are prepared to absorb sell pressure and defend the price from dropping lower. 

Conversely, if they are sell orders, this region becomes a resistance wall that could cap upside momentum until enough buying volume breaks through. Order book liquidity not only reveals where large players are positioned but also provides clues about market sentiment and potential volatility. Whether BTC bounces, consolidates, or breaks through this zone will likely determine the next major directional move, making $116,200–$116,500 a key battleground for bulls and bears.

Is it a Good Time to Buy BTC?

A close observation of the daily chart suggests that the BTC price is failing to clear the pivotal resistance between $116,146 and $116,728. The recent rise has also attracted bearish activity, validating their capture of the upper resistance. On the other hand, the spot volume remains lower, which suggests the rally could be a short-lived one. A popular analyst, popularly known as Ted, believes the current rise is perps-driven and may fade soon. 

Spot CVD (Cumulative Volume Delta) is trending lower, meaning there is net selling pressure on spot exchanges even as price climbs. This suggests that the rally is being driven primarily by perpetual futures traders taking on leveraged long positions, rather than by genuine spot market demand. Historically, such perp-driven moves often lack strong conviction and can be vulnerable to sharp reversals if funding rates flip or leveraged traders get liquidated. Without sustained spot buying to support price levels, the risk of a full retracement remains high.

On the other hand, momentum is rising ahead of expectations for a rate cut by the Fed. Hence, the Bitcoin (BTC) price may break the resistance at $118,000 and reach $120,000. If the FED does not lower the rates, a sharp correction could follow.