Bitcoin (BTC) is currently demonstrating a clear ranging pattern, oscillating between the key levels of $112,000 and $120,000, as highlighted in a recent analysis by cryptocurrency expert @CrypNuevo. This Sunday update, shared on August 24, 2025, points to significant liquidity pools on both sides of this range, suggesting potential volatility ahead. Traders should pay close attention to these developments, as liquidations are indicating a possible deviation outside the established boundaries, which could trigger substantial price movements. In this detailed trading analysis, we delve into the market makers' footprints and explore actionable insights for BTC trading strategies, including support and resistance levels, to help investors navigate this consolidating phase effectively.

Analyzing BTC's Current Range and Liquidity Dynamics

The price action of BTC has been confined to a tight range between $112k and $120k, creating a classic consolidation setup that often precedes breakouts. According to @CrypNuevo's thread, there are two noticeable liquidity pools (LPs) on each end of this spectrum, which act as magnets for price due to accumulated orders. These pools represent areas where large volumes of buy and sell orders are clustered, potentially leading to rapid fills and increased volatility when breached. For instance, if BTC approaches the lower bound at $112,000, it could attract buying interest from sidelined capital, providing support. Conversely, the upper resistance at $120,000 might see selling pressure as traders take profits or short the asset. Recent liquidations further hint at an impending deviation, where price could fake out in one direction before reversing, a common tactic employed by market makers to hunt stops. Traders monitoring on-chain metrics, such as liquidation heatmaps from platforms like Hyblock Capital, would note elevated activity around these levels, with potential long liquidations above $120k and shorts below $112k. This setup offers trading opportunities for range-bound strategies, like buying dips near support and selling rallies near resistance, while keeping stop-losses tight to manage risk.

Market Makers' Footprints and Deviation Risks

Diving deeper into the market makers' (MMs) footprints as outlined by @CrypNuevo, we see subtle clues in the order flow and volume profiles that suggest engineered price movements. MMs often manipulate ranges to accumulate liquidity before a directional push, and the presence of these LPs indicates such activity. For example, a deviation could manifest as a quick wick below $112k to liquidate longs, followed by a rebound, or a spike above $120k to trap shorts. Historical data from similar ranges, such as BTC's consolidation in late 2024, shows that deviations often lead to 5-10% moves within 24-48 hours post-breakout. Without real-time market data at this moment, traders should cross-reference current BTC/USD pairs on exchanges like Binance or Coinbase for live volumes; typically, a surge in trading volume above 100,000 BTC in 24 hours could signal the start of a breakout. Key indicators like the Relative Strength Index (RSI) hovering around 50 on the daily chart reinforce neutrality, but a divergence could tip the scales. Institutional flows, potentially tracked via ETF inflows, might also influence this, with positive net flows supporting an upside deviation. For risk management, consider position sizing at 1-2% per trade and watching for correlations with ETH or broader crypto indices, as a BTC move often cascades across the market.

In terms of broader market implications, this ranging behavior in BTC aligns with overall crypto sentiment amid global economic uncertainties, where traders are cautious yet opportunistic. Support at $112k could hold if macroeconomic factors like interest rate decisions remain favorable, potentially leading to a bullish breakout toward $130k. On the flip side, a bearish deviation might test lower supports around $105k, opening shorting opportunities. To optimize trading, incorporate tools like Fibonacci retracements from recent highs, where the 0.618 level often coincides with these LPs. Ultimately, staying vigilant on liquidations and volume spikes will be crucial for capitalizing on the next move. This analysis underscores the importance of disciplined trading in volatile assets like BTC, blending technical setups with real-time monitoring for the best outcomes.