Bitcoin range chop continues, but a breakout is brewing

Key Points

1. Bitcoin sold off sharply after the FOMC minutes and Fed Chair Jerome Powell's press conference, dropping below $116,000 but staying within its 18-day range.

2. Analysts described the price action as a liquidity hunt, with indecision in the market and key liquidation levels identified at $120,000 (shorts) and $115,000-$111,000 (longs).

3. Orderbook data shows sell walls thickening at $121,100 and substantial bids appearing at $111,000, indicating potential support and resistance levels.

4. Despite the downside move, positive factors include continued Bitcoin purchases by companies (100:1 buyers vs. sellers per month) and resumed inflows into spot Bitcoin ETFs ($641.3 million since July 23).

5. The market may see further downside to absorb long liquidity in the $115,000-$111,000 range, but a strong bid at $111,000 could help reclaim the range above $116,000.