TLDR:
Bitcoin price holds $112K support but must break $117K resistance to resume upward momentum.
Low trading volume during consolidation signals market indecision on BTC’s next move.
Bull and bear traps near $112K and $120K increase volatility and trader caution.
US inflation data next week may influence Bitcoin’s ability to break out or fall back.
Bitcoin’s price is stuck in a narrow range, with traders closely watching key support and resistance levels. After a recent bounce off $112,000, the crypto market awaits a clear move to confirm the next trend.
Bitcoin has been trading between $115,000 and $120,000 for weeks. This consolidation has kept investors cautious as they try to gauge whether bulls will push prices higher or sellers will take control.
Sources tracking market sentiment point to critical levels where the battle is intensifying.
Analyst Daan Crypto Trades highlighted that the $112,022 support level has held firm so far. The price recently bounced from this zone, indicating buyers remain active.
$BTC Sometimes one level is all you need.
Good reaction so far, clear invalidation going forward as well. Don’t want to see price go back down below that point.
Price back in the $115K-$120K range but needs to keep pushing to break out of this current consolidation. https://t.co/JhTuP4Jylx pic.twitter.com/tWvdkURAT4
— Daan Crypto Trades (@DaanCrypto) August 8, 2025
Meanwhile, $117,687 stands as a significant resistance that Bitcoin must break to resume upward momentum. The price’s ability to stay above support and break resistance will shape the near-term outlook.
Daan emphasized that falling below $112,000 could undermine bullish hopes and invite further declines.
Key Bitcoin Price Levels Define Next Move
Bitcoin’s resistance near $117,687 has been tested twice but not decisively cleared. This level acts like a gatekeeper.
Traders want to see a strong push past this number to confirm the rally will continue. If Bitcoin breaks above this resistance, it could set sights on the $120,000 mark. Reaching $120,000 again would signal renewed confidence among investors. However, failure to overcome resistance could trigger a retest of lower supports, notably the $112,000 zone.
Volume analysis adds clarity. High trading volumes coincided with price surges in May and June. Since then, volume has declined during consolidation, showing market indecision. Without fresh volume supporting a breakout, the rally may stall.
Market watchers interpret this as a sign that Bitcoin needs a decisive event to break free from the range.
Nilesh Rohilla also weighed in with observations on recent traps. He mentioned that a bear trap near $112,000 caught some sellers off guard. Earlier, a bull trap just above $120,000 led to quick sell-offs. These traps signal market volatility and make traders wary of false breakouts.
#Bitcoin Daily Update – Bull Trap, Bear Trap, and the Next Move…#Bitcoin is currently trading at $116,153, showing strong recovery after a recent bear trap near $112K. Earlier, the market faced a bull trap above $120K, which triggered a short-term sell-off.
🔹 Key Levels:… https://t.co/tbPGSwQoRB pic.twitter.com/mGTVPpml2e
— Nilesh Rohilla (@nilesh_rohilla) August 8, 2025
Rohilla pointed to the importance of a clean break above resistance to avoid these pitfalls.
Upcoming US Inflation Data Could Shake Crypto Prices
Investors are also eyeing the US Consumer Price Index data set for release next week. This report could affect Bitcoin and broader crypto markets. If inflation numbers surprise on either side, markets may respond sharply.
A hotter-than-expected reading might push interest rates higher and weigh on risky assets like cryptocurrencies. Conversely, a cooler reading could boost confidence and drive prices up.
Both Bitcoin and Ethereum face resistance near $120,000 and $4,100 respectively. Breaking these levels could ignite strong rallies across altcoins.
However, traders remain cautious, knowing macroeconomic data can quickly shift market momentum. The next few days promise to be critical in determining whether Bitcoin breaks out of its consolidation or retreats.
Currently, Bitcoin trades about $116,500 with moderate volume. The market remains tense as it balances between bulls and bears. Close attention to price action around $112,000 and $117,687 will reveal the path ahead.
