Bitcoin price stayed near $118K after recent volatility and a record high above $124K. Analysts said BTC followed a Wyckoff pattern tied to global liquidity growth.
On-chain data showed major supports near $117K and $114K remained strong. Bitcoin has had a turbulent week in which BTC price briefly set a record above $124,000. The last couple of days, however, the coin hovered between $116,000 and $118,000.
Analysts said the market consolidated, with technical and on-chain signals pointing to continued buyer support. Was the sharp pullback a pause before further gains, or a sign of exhaustion?
Bitcoin Price Aligned with Wyckoff Structure
The latest rally occurred after the US Producer Price Index release caused volatility across risk assets.
Despite the pullback, analysts said the Bitcoin price still followed a Wyckoff Accumulation pattern.
According to analyst Ted, the cycle began in early 2025 with the “spring” phase forming in April. Since then, BTC rallied steadily, surpassing $124,000 earlier this month.
Ted said the move did not mark a final peak but represented the “Sign of Strength” stage within the Wyckoff framework.
The Wyckoff model, created in the early 20th century, divides price cycles into stages such as accumulation, spring, and breakout.
Traders use it to interpret large market structures and identify when institutional demand might drive new rallies. Ted said the current alignment suggested the cycle still had room to extend.
Liquidity trends supported this outlook. Charts comparing BTC performance with the global M2 money supply showed both moving higher since January.
M2 measures cash and liquid deposits across the economy. Rising liquidity has historically provided tailwinds for scarce assets such as Bitcoin.
Based on the pattern and liquidity growth, analysts said projections pointed to possible gains toward $160,000 if current conditions persisted.
Technical Indicators Showed Neutral Momentum Near Highs
At press time, daily indicators pointed to consolidation. The Relative Strength Index (RSI) was near 53, a neutral reading that suggested no overbought or oversold pressure.
The Moving Average Convergence Divergence (MACD) line was above its signal line, a mild bullish sign. However, the histogram stayed flat, showing little immediate momentum.
These readings confirmed the Bitcoin price was pausing near record levels. Analysts said short-term moves would depend on whether BTC could hold its support zones and retest the $124,000 region.
Sustained trade above that level could validate another upward push, while continued consolidation might extend the current range.
Market structure showed no confirmed reversal. Instead, the indicators reflected a market cooling after strong gains, with buyers still present at lower levels.
On-chain Support Highlighted Buyer Demand
On-chain data reinforced the case for strong support. Analyst Ali Martinez tracked cost basis clusters, where large amounts of BTC changed hands.
He said the most significant near-term zone stretched from about $117,500 to $117,600, covering nearly 73,000 BTC.
A secondary cluster formed between $114,400 and $114,600, where holders added more than 56,000 BTC.
These levels mattered because past buyer activity often created defense lines when prices retested them.
Martinez said as long as Bitcoin stayed above $117,500, the market structure reflected firm support from recent buyers.
This data suggested that the latest pullback did not erode confidence. Instead, it confirmed that many holders added positions near these ranges and were likely to defend them.
Forward Outlook for Bitcoin Momentum
Analysts agreed that the broader trend remained intact as long as BTC respected its support bands and global liquidity conditions continued.
The alignment with Wyckoff stages suggested the current rally had not fully played out. In the near term, traders watched whether the Bitcoin price could reclaim $124,000 and sustain momentum.
On-chain evidence and neutral indicators suggested consolidation rather than weakness.
If liquidity growth persisted and buyers defended current levels, analysts said Bitcoin could attempt another leg higher in the coming sessions.
Source: https://www.thecoinrepublic.com/2025/08/17/where-is-bitcoin-price-headed-as-it-hovers-near-key-support/