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Introduction
Bitcoin has been trapped in a tight trading range despite recent volatility, creating conditions for a potential explosive price movement. Analyst DaanCrypto identifies significant liquidity building just outside current price levels that could trigger the next major market move. The cryptocurrency’s Q4 performance remains underwhelming but leaves room for recovery.
Key Points
- Bitcoin has consolidated within a tight $106,000-$115,000 range for two weeks despite ongoing volatility, creating conditions for a significant breakout
- $106,000 represents critical support with heavy long liquidations, while $115,000 holds substantial short-side liquidity that could trigger a squeeze if breached
- Bitcoin's Q4 2025 performance stands at -2.84%, significantly underperforming its historical average of 74.77%, though potential Fed rate cuts could fuel recovery
Sideways Action Amid Market Volatility
Bitcoin has struggled to establish a stable directional trend over the past week, with intense volatility continuing to rock the cryptocurrency market. Following two weeks of market correction, the premier cryptocurrency attempted a price rebound, reaching around $112,000 before retracing to the $107,000 price zone. Currently, Bitcoin trades in the $111,000 range after steady gains in the past 48 hours, reflecting the ongoing battle between buyers and sellers in this consolidation phase.
Despite the consistent price swings, analyst DaanCrypto has identified that Bitcoin has remained locked in a local price range over the past two weeks, with its present price hovering above the midpoint of this structure. This sideways action has been driven by buyers and sellers repeatedly foiling each other’s attempts to break out, preventing the asset from establishing a decisive breakout pattern. The current trading pattern represents a classic consolidation phase that often precedes significant market moves.
Liquidity Accumulation and Key Price Levels
Amid the continuous consolidation, untriggered liquidation levels are accumulating just above and below the local price range, a pattern typical of Bitcoin’s pre-breakout phases. DaanCrypto explains that the longer the price consolidates within a tight corridor, the more liquidity pools build up outside it. When price eventually sweeps these clusters, it often triggers a cascade of liquidations and stop orders, which fuel the next large price move.
Using data from Coinglass, DaanCrypto has identified $106,000 as a level with the heaviest concentration of long liquidations, making this price point a critical support zone. A downward wick below this threshold could trigger selling forces pushing Bitcoin to deeper levels. Meanwhile, the $115,000 region holds thick short-side liquidity, meaning a push above this level could fuel a rapid short squeeze and propel BTC to higher levels, potentially beyond its current all-time high of $126,210.
Q4 Performance and Recovery Prospects
In contrast to popular sentiments of an ‘Uptober’ and blooming Q4, Bitcoin has failed to achieve sustainable price growth in October 2025. A report from the Bitcoin Archive states that the crypto asset’s return in Q4 2025 is now estimated at -2.84%. This figure shows extreme underperformance compared to Bitcoin’s historical average Q4 return of 74.77%, highlighting the challenging market conditions facing the cryptocurrency.
However, with over 60 days remaining until the end of 2025, there is still ample time for the premier cryptocurrency to stage a market recovery. After recent CPI data met expectations, the chances of an interest rate cut have increased, and an eventual announcement by the Federal Reserve could potentially trigger Bitcoin’s rebound among other macroeconomic factors. At press time, Bitcoin continues to trade at $111,424, reflecting a 3.91% gain in the past seven days, suggesting some positive momentum despite the overall consolidation pattern.
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