TLDR:
- BTC price holds $118K as traders prepare for a squeeze fueled by tight Bollinger Bands.
- Liquidity clusters build above $119K, with targets set at $120K and $123K if demand persists.
- Analysts highlight heavy short positions near $115K–$117K that may trigger a fast upside move.
- Technical compression signals an imminent breakout as traders await the July monthly close.
Bitcoin is holding steady near $118,477, but traders say calm rarely lasts long. Dip buyers stepped in fast this week, soaking up liquidity and forcing shorts to cover.
Now, the stage looks set for a sharp move, with multiple price clusters building above and below the current range. The market’s focus is locked on whether $BTC breaks higher or sweeps one last dip before running. Either way, volatility appears ready to return.
Bitcoin Bulls Target Liquidity Above $120K
Zen from WiseAnalyze noted that Bitcoin hit his marked dip level at $115,700 before bouncing back above the daily 20-SMA.
Another sniper precision for marking dip zone for you
I marked 115700, I wrote 115700 and $BTC dipped to 115700
• Above: 119259 / 120300 / 123300
• Below: 117216 / 115700 / 114667
• Above: 119880 / 120570 /… https://t.co/RknnwIid48 pic.twitter.com/JCuNHAoqjL— Zen (@WiseAnalyze) July 31, 2025
He highlighted key resistance levels at $119,259, $120,300, and $123,300, with liquidity magnets stacked above $119,812. Zen expects Bitcoin to test these upper levels in the coming days, even if a brief revisit to $117,200 happens first.
He added that volume on the recent dip stood out more than price itself, signaling strong demand. If this buying pressure holds, Zen suggested the market could start hunting liquidity higher, possibly clearing multiple clusters at once.
TheKingfisher pointed to Bitcoin’s liquidation map, showing a heavy build-up of short positions between $115,000 and $117,000.
These zones often act like magnets for price movement as traders’ stops get triggered. If Bitcoin keeps pressing higher, this imbalance could fuel a fast squeeze, with $118,580 marked as a near-term target.
Whoa, check out this $BTC liquidation map
We've got some massive short liquidation clusters building up around the 115k to 117k range. Smart money loves to target these zones… pic.twitter.com/jALgVXZxku
— TheKingfisher (@kingfisher_btc) July 31, 2025
He also stressed the importance of managing risk around these levels. Smart traders, he explained, watch how price behaves near liquidation clusters to track momentum.
Tight Bollinger Bands Hint at Imminent BTC Price Break
Cas Abbé observed that Bitcoin’s Bollinger Bands are now the tightest in years, a setup that often precedes sharp price swings. He noted that the daily RSI is attempting to break its downtrend, while recent dips have been quickly absorbed by buyers.
According to Cas, these signals point toward an upside move if momentum holds. He added that such technical compression rarely lingers for long, suggesting Bitcoin could soon decide its next big direction.
Bitcoin trades at $118,477, up 0.08% in 24 hours but down 0.31% on the week, per CoinGecko.
Traders are watching the July monthly close for confirmation before placing bigger bets. For now, the $115K to $120K range remains the battleground, with liquidity sitting just above and buyers standing firm below.
If the current pattern plays out, Bitcoin’s next move could come fast.
The post Bitcoin Traders Brace for a Volatility Squeeze as BTC Price Hovers Near $118K appeared first on Blockonomi.
Source: https://blockonomi.com/bitcoin-traders-brace-for-a-volatility-squeeze-as-btc-price-hovers-near-118k/