- •Bitcoin trades between +0.5σ and +1.0σ MVRV bands, nearing overbought territory with bullish momentum.
- •Liquidity clusters near $120K suggest recent short liquidations and possible local top formation.
- •Historical October data shows Bitcoin's strong seasonal performance, reinforcing current bullish sentiment.
As of this writing, Bitcoin trades at $118,811 fueled by a massive $65.9 billion in 24‑hour volume. With a sharp 1.77 % gain in a day and a strong 6.74 % jump over the week, BTC’s momentum is heating up—and traders are watching closely.
Bitcoin Breaks $117K, Toward $139K Resistance
Bitcoin has pushed past the $117,000 mark, towards the $139,000 level as indicated by the MVRV Extreme Deviation Pricing Bands, an on‑chain valuation tool from Glassnode.
The MVRV ratio compares market price against the average price at which all Bitcoin was last moved — the realized price ($53,931). With most holders in profit, the market is riding a wave of confidence typical of bull runs. Meanwhile, support levels near the mean band ($94,650) and the -0.5σ band ($72,567) remain robust in case of downturns.
Liquidity Clusters Signal Possible Resistance Near $120K
Trading data from Coinglass’ Binance BTC/USDT liquidation heatmap highlights significant liquidity clusters just under $120,000. These clusters represent zones where many leveraged traders placed stop‑losses or entered positions that got liquidated during the recent surge.
The “Liquidity Cluster Grabbed” near $120K confirms that Bitcoin triggered these stops, resulting in a short squeeze and subsequent pullback. This price action reflects classic liquidity‑driven moves, where markets target areas with many stop‑losses to shake out weaker traders.
The $115,000–$117,000 zone acted as resistance, then flipped to support. These levels are crucial for short‑term traders to watch closely. The push toward $120,000 may signal a local top before the next move.
October Seasonality Boosts Bullish Outlook
Over the past 12 years, October is historically Bitcoin’s second‑best month, only trailing November in gains. October has closed positive 10 times, including a six‑year winning streak. This seasonal strength adds weight to the current bullish momentum, though past performance is no guarantee.
With the new month underway, Bitcoin’s push above $117K and its approaching $139K resistance line align well with these seasonal trends. However, investors should remain mindful of the technical signals pointing to an overbought market phase.
Bitcoin’s climb beyond $117,000 places it in bullish territory but edging toward historically sensitive valuation levels. The MVRV bands warn of potential resistance near $139K, while recent liquidity cluster activity around $120K hints at a pause or pullback.