Key Points:
- Bitcoin price is consolidating around $118K after hitting a new all-time high of $123,100.
- Seller exhaustion may be near, with liquidity clustering around the $115K – $117k level.
- Despite retail sell pressure, bulls are holding strong and are eyeing a move towards $140K.
Bitcoin has entered a consolidation phase after surging to its latest all-time high. The question is whether BTC will fall to $115,000 before rising again when the market cools.
This scenario is being fueled by liquidity and market sentiment. It also indicates that the market is headed towards a period of healthy recalibration before the next leg up..
Bitcoin Price Consolidation Shows Signs of Exhaustion
After peaking at $123,100, Bitcoin is hovering just below $120,000. Per a recent post on the on-chain analytics platform Glassnode, the current state of the market is “healthy yet fragile.” Even though many investors remain profitable, there are clear signs that the enthusiasm is fading.
The Realized Profit to Loss Ratio has dropped from 3.9 to 2.6. It compares coins sold at a profit versus those sold at a loss. While this still favors profits, the momentum has slowed.
Glassnode notes that this shows a recalibration period as investors become more cautious after the recent all-time high. Glassnode notes that the cooling profitability does not necessarily mean a bearish takeover is in play.
Instead, Bitcoin seems to be coiling for another move upward. If history repeats itself, this period of consolidation could stretch over several weeks.
Why $117.5K Matters
Traders are closely watching $117,500 as a major short-term support level. According to more updates from Glassnode, this is where the largest cluster of liquidity is currently located.
Bitcoin hovering between $115K and $120K signals rising tension. The longer it lingers, the higher the odds of a sharp move either way.
Liquidity heatmaps show strong interest between $117,500 and $115,000. This indicated that many market participants place their bets at this level. If Bitcoin dips, it’s expected to trigger a massive cascade of buy orders before a sharp rebound.
Volume data also points to $118,000 as a critical short-term support area. This zone provides a “buffer” before any drop to $115,000. So far, buyers have quickly absorbed sell pressure, which shows that the market is still very resilient.
Retail Sellers Drag Momentum, But Bulls Stay Strong
Despite the bullish long-term outlook, retail activity has introduced short-term problems. Per CryptoQuant, Bitcoin’s Net Taker Volume has turned negative and has fallen below $60 million.
This indicates that more market takers are selling rather than buying, a trend driven mainly by retail traders.
Regional demand indicators have also confirmed this cautious mood across the market. For example, in the U.S., the Coinbase Premium Index has remained flat.
This showed that American investors are either taking profits or waiting for better entry points. Meanwhile, the Korea Premium Index has dropped into negative territory. This means that Bitcoin trades at a discount on the Korean exchange.
Will Bitcoin Break Above $120K or Revisit $112K?
Technical indicators currently show two possible outcomes. Bulls will likely regain control if Bitcoin manages to hold above the mid-$110K range. The critical thing to note is how the market reacts to a sweep of the Fair Value Gap (FVG) between $115,200 and $112,000.
A quick rebound from this zone could spark the next leg up. It could take Bitcoin past $123,100 and toward the $140,000 mark.
This would also work well because the price inefficiencies mentioned above have already been filled. In essence, the path upwards will be clearer.
Conversely, a weak response from this zone may expose Bitcoin to a harsh retracement. Analysts believe the speed and strength of any bounce from the $112K–$115K range will be necessary.