Bitcoin (CRYPTO: BTC) is cooling near $116,000 after its post-FOMC rally, with traders closely watching liquidity levels to gauge the next move.

What Happened: Prominent analyst Kevin noted on Patreon that Bitcoin is attempting to form a cup-and-handle on the 4-hour chart, but momentum stalled near $118,000--just below the key 0.786 Fibonacci level at $118,300.

He pointed out that weak spot volume and declining liquidity flows are contributing to sideways price action.

Kevin highlighted a critical range of $106,000–$118,300:

• Bullish case: Breakout above could target $120,000–$125,000.
• Bearish case: Breakdown risks $104,000–$100,000.

Liquidity heatmaps show short liquidity up to $119,000 and long liquidity clustered at $106,000–$108,000.

Bitcoin's September performance has been stronger than historical averages, but with declining liquidity and a choppy rising channel, traders warn the market could be at a tipping point.

The $118,000 resistance and $106,000 support zones are set to define the next decisive move.

Also Read: XRP ETF Sets Record For 2025 Launch Volumes, DOGE ETF Ranks In Top Five: Is This A ‘Digital Asset Revolution’?

What's Next: In his X post on Sep. 19, Kevin explained Bitcoin is up 24% this year with no signs of cycle-top behavior. He predicts by halving/cycle timing, the peak should come by Oct–Nov, but indicators don't support it.

Castillo Trading said Bitcoin and Ethereum (CRYPTO: ETH) remain in a "slow trade" after FOMC, but an "interesting weekend" could test whether market strength is real or fading.

Echoing similar sentiment, Altcoin Sherpa described current action as a "slow pullback" amid broad weakness. He continues to hold longs but remains ready to rebalance if downside accelerates.

Read Next: 

• Bitcoin, Ethereum, XRP, Dogecoin Dip As Traders Lock In Profit

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