Bitcoin just slipped under $114K—and that’s exactly when the best setups hide in plain sight. With major resistance rejecting price near $119.5K and momentum indicators cooling, the market is teasing traders with what looks like weakness. But beneath the surface, liquidity is building around the $111K–$113K zone—a pocket where disciplined entries and tight risk can outshine fear. Is this the shakeout before the next leg, or the first step into a deeper correction?

What’s Happening Now

Bitcoin has shed roughly 6.47% on the week, failing to hold above $116K after a rejection near $119.5K. The RSI ~39 signals approaching oversold territory, while the MACD remains bearish, indicating momentum skewed to the downside. Market watchers like Michaël van de Poppe are eyeing $112K liquidity as a high-probability reaction zone, consistent with past-cycle shakeouts preceding accumulation.

Why This Matters to Traders

Volatility around thin liquidity often produces fakeouts, punishes late entries, and rewards those who plan around clear invalidation. A hold of the $111K–$113K area keeps the bull structure intact and can fuel a reflexive bounce; a clean break below opens $103K as the next logical support where forced unwinds may accelerate.

Key Levels and Scenarios

- Support: $111K (line in the sand), $112K–$113K (liquidity/entry zone), $103K (major support if breakdown) - Resistance: $116.8K (near-term pivot), $120K (range high and sentiment trigger) - Bullish case: Hold above $111K → reclaim $116.8K → test $120K - Bearish case: Lose $111K → momentum to $103K with potential for cascading liquidations - Base case: Range between $111K–$118K while the market awaits macro clarity

Actionable Game Plan

• For Dip Buyers: Stagger bids in the $112K–$113K zone with tight invalidation below $111K. Look for a bullish RSI divergence or MACD histogram contraction to confirm fading downside.
• For Breakout Traders: Wait for a 4H close above $116.8K with rising volume; target the $119.5K–$120K pocket, then reassess.
• For Risk Managers: Size down while MACD is negative; keep stops mechanical to avoid slippage during volatility spikes.
• For Short Bias: Only consider momentum continuation if $111K cleanly breaks and retests as resistance; avoid crowded late entries.

How to Validate the Bounce

Watch for a sequence: liquidity sweep into $111K–$113K → quick reclaim of intraday supports → higher lows on 1H–4H → volume expansion on pushes toward $116.8K. Failure to build higher lows suggests the bounce is just a relief move.

Risk Factors to Respect

- Leverage Flush: Elevated open interest can turn minor breaks into forced selling, especially below $111K. - Macro Headwinds: Any surprise from rates, liquidity conditions, or regulatory headlines can amplify moves. - Indicator Lag: RSI/MACD can stay bearish in trending markets—use them with structure and volume, not in isolation.

Bottom Line

This is a location, not a signal. The $111K–$113K band offers a defined-risk opportunity for patient traders, while a loss of $111K argues for standing aside or shifting bias toward $103K. Let price confirm your plan: respect invalidation, scale prudently, and trade the levels—not the noise.

If you don't want to miss any crypto news, follow my account on X.