Key points:
Bitcoin still trades in its 18-day range despite a breakdown below $116,000.
The latency between pro-crypto policy from US regulators and the Trump administration and Bitcoin price has left traders feeling anxious.
Bitcoin (BTC) sold off sharply on Wednesday following the Federal Reserve’s release of the FOMC minutes and Fed Chair Jerome Powell’s presser, where he explained why the central bank elected not to cut interest rates. Prices rebounded on Thursday after US equities and crypto markets returned their focus to the fundamentals at hand and the projected longer-term impact of President Trump’s economic mandate.
Despite the sharp drop below $116,000, BTC continues to trade in the $115,000 to $121,000 range it has been in for the last 18 days, and data suggest a range expansion is imminent.
Analysts at Hyblock Capital described the pre- and post-FOMC price action as a liquidity hunt where “a classic indecision 15m candle emerged with wicks on both sides as markets wavered.” The analysts pointed to the bid-ask-ratio metric at 10% orderbook depth turning red, which heightened the chance of price tapping a liquidation level at $115,883.
BTC/USDT after FOMC minutes. Source: X / Hyblock
Looking at the current liquidation heat map for the BTC/USDT perps pair at Binance and Bybit, the liquidation and price range remains unchanged, with short liquidations accelerating above $120,000 and longs at risk of liquidation below $115,000.
BTC/USDT liquidation heatmap. Source: Hyblock
Aggregate orderbook (2.5% to 10% depth) data from TRDR shows sell walls thickening at $121,100 and substantial bids appearing at $111,000.
BTC/USDT 1-hour chart, Binance. Source: TRDR.io
Price compression led to downside range expansion
On Wednesday, Cointelegraph analysts suggested that Bitcoin’s price compression and absence of aggressive leverage use in its futures markets are signs that BTC is on the verge of a range expansion. At the time, the Bollinger Bands had also narrowed, with BTC price trading above the 20-day moving average, leading many traders to predict an upside breakout.
BTC/USDT 1-day chart,…..
