Bitcoin traders are closely watching a pivotal moment in the market as the cryptocurrency has absorbed all downside liquidity, setting the stage for a potential test of key resistance levels. According to crypto analyst Michaël van de Poppe, this development raises a crucial question: when Bitcoin approaches $116.8K, will it break back into the established range or face rejection? This scenario could define market direction for the coming weeks, with a successful breakthrough potentially leading to new all-time highs (ATH). As of the analysis shared on August 1, 2025, Bitcoin's price action suggests that downside pressures have been neutralized, shifting focus to upside momentum and resistance barriers.

Analyzing Bitcoin's Price Momentum and Resistance Levels

In recent trading sessions, Bitcoin has demonstrated resilience by sweeping through lower liquidity zones, effectively clearing out sell-side orders that could have dragged prices further down. This liquidity grab often signals a reversal or consolidation phase, where bulls regain control. The $116.8K level emerges as a critical resistance point, historically acting as a ceiling during previous rallies. If Bitcoin tests this threshold, traders should monitor for signs of breakout, such as increased buying volume and positive momentum indicators like the Relative Strength Index (RSI) climbing above 70. On the flip side, a rejection could lead to a pullback toward support levels around $100K or lower, based on Fibonacci retracement analysis from the last major uptrend. Without real-time data at this moment, historical patterns from similar setups in 2024 show that such tests often result in volatility spikes, with trading volumes surging by 20-30% during decisive hours. For instance, in late 2024, a comparable liquidity sweep preceded a 15% rally within days, highlighting the potential for rapid gains if resistance breaks.

Trading Opportunities and Risk Management Strategies

From a trading perspective, positioning for a breakout at $116.8K offers compelling opportunities across multiple pairs, including BTC/USD and BTC/ETH. Long positions could be initiated on a confirmed close above this level, targeting new ATH around $120K or higher, with stop-losses placed below recent swing lows at $105K to mitigate downside risks. On-chain metrics, such as rising active addresses and higher transaction volumes reported in blockchain explorers, support a bullish narrative, indicating growing network activity that often correlates with price appreciation. Conversely, if rejection occurs, short sellers might find entries with targets at $100K support, watching for bearish divergences in MACD indicators. Institutional flows, evident from increased ETF inflows in recent months, could amplify movements; for example, a 10% uptick in spot Bitcoin ETF volumes has historically boosted prices by 5-7% in the short term. Traders should also consider correlations with stock markets, where a positive Nasdaq performance often bolsters crypto sentiment, creating cross-market trading setups like pairing Bitcoin longs with tech stock options.

Looking broader, this resistance test aligns with evolving market sentiment amid global economic factors, such as interest rate expectations and geopolitical stability. A breakthrough could ignite altcoin rallies, with Ethereum potentially following suit toward $5K if Bitcoin leads the charge. However, risks remain, including regulatory news or macroeconomic data releases that could sway sentiment. In summary, the coming weeks hinge on this $116.8K test, urging traders to stay vigilant with real-time charts and volume data for informed decisions. By focusing on these levels, investors can capitalize on volatility while managing exposure through diversified portfolios, blending spot holdings with derivatives for optimal risk-reward ratios.

Overall, this setup underscores Bitcoin's maturing market structure, where liquidity dynamics play a starring role in price discovery. With no immediate real-time data available, relying on analyst insights like those from Michaël van de Poppe provides a solid foundation for strategy building. As always, combining technical analysis with fundamental drivers ensures a well-rounded approach to navigating these high-stakes trading environments.