Key Points:

• Bitcoin remains trapped within an 18-day trading range, recently dipping below $116,000.

• The uncertainty around US regulators and the Trump administration’s pro-crypto stance has made traders feel uneasy.

Bitcoin (BTC) took a hit after the Federal Reserve’s FOMC minutes were released, particularly following Chairman Jerome Powell’s press conference. This drop came as the central bank opted not to lower interest rates. However, the market saw a recovery on Thursday as US stocks and crypto markets refocused on underlying fundamentals and the potential long-term effects of President Trump’s economic commitments.

Despite falling sharply below $116,000, Bitcoin has been trading between $115,000 and $121,000 for the last 18 days. Some analysts suggest that a range expansion could be on the horizon.

High Block Capital analysts characterized the trading activity before and after the FOMC as a liquidity hunt, noting that moments of indecision appeared on both sides of the market. They highlighted a bid raciometric that turns red at a 10% order book depth, signaling a higher chance that prices may hit liquidation levels around $115,883.

Current liquidation heatmaps for the BTC/USDT Perps pair on platforms like Binance and Bybit show that the liquidation price range remains steady, suggesting that short liquidation risks exceed $120,000.

Data from TRDR depicts thick buy walls at $121,100, confirming a solid bid at $111,000.

Price Compression Indicates Potential Range Expansion

On Wednesday, Cointelegraph’s analysts indicated that what’s happening with Bitcoin price compression and the absence of high leverage in its futures market suggests BTC might soon break out of its current range. At the same time, the Bollinger Bands tightened while BTC remained above the 20-day moving average, leading many traders to speculate on an upward breakout.

The market seems targeted toward Bitcoin’s negative liquidity, but some positive trends are also evident. Charles Edwards, founder of Capriole Investments, pointed out that, over the past six weeks, “three or more companies are buying Bitcoin every day.” His metrics suggested a 100:1 buyer-seller ratio currently.

Related: Bitcoin Price Targets $119K as Treasury Purchases 28k BTC in Two Days

Bitcoin ETFs saw renewed inflows after a $285 million outflow last week, with a total of $641.3 million noted since July 23rd. This reflects how Bitcoin prices have been trading dynamically.

This week’s White House Crypto Report, alongside SEC Chairman Paul Atkins’ remarks on the digital finance revolution, established clear policies on how the Trump administration aims to support growth in the US crypto sector.

While the immediate effects may not show up in crypto prices, these developments lay a foundation for broader adoption, giving institutional investors a reason to confidently increase their investments in Bitcoin and other cryptocurrencies.

In the near term, if Bitcoin sellers continue to dominate, there could be a price drop to absorb liquidity in the $115,000-$111,000 range. For bulls, a strong push at $111,000 would be ideal, as it may create enough momentum to reclaim a position above $116,000. Even more favorable outcomes would see spot and perpetual futures trading shift positively as buyers drive markets to push through the $120,000 resistance.