Bitcoin (CRYPTO: BTC) is hovering around $114,000 on Thursday morning, with analysts eyeing further upside subject to a benign inflation data report to be released later in the day.
What Happened: Daan Crypto, a crypto analyst, noted that Bitcoin surged past a key liquidity zone near $114,000 on Wednesday after fresh US Producer Price Index (PPI) data.
The move cleared a dense pocket of buy and sell orders, forcing liquidations of short positions and sending the price briefly higher before settling just below the level.
Charts show liquidity bands remain concentrated between $111,000 and $114,000, with traders treating the area as a short-term battleground.
The push follows steady gains from the $110,000 base, where the market had been building momentum in recent days.
The setup comes ahead of Thursday's Consumer Price Index (CPI) release, which is expected to add more volatility.
Analysts note that a clean break and sustained close above $114,000 could extend the uptrend, while a rejection may drive Bitcoin back toward the $111,000 range.
TheKingfisher, a liquidation heatmap expert on X, highlighted that liquidity maps now place most orders just above spot price, acting like a magnet for further price action.
Read Also: Anthony Scaramucci-Supported Avalanche Network Reportedly Raising $1 Billion For AVAX-Focused Crypto Treasury
Can On-Chain Data Signal a Bitcoin Breakout?
Bitcoin is once again locked near the $113,000 mark, a price level that has blocked progress for weeks. Analysts say the resistance looks weaker with each test, and a daily close above it could open the path toward $116,000.
On-chain data from Glassnode shows the cryptocurrency hovering just below the MVRV +0.5σ band near $115,000.
There have been previous cycles where this induced a pivot, with there being extended durations of sideways trading usually resulting in an upward trend that followed the breaking of the ceiling.
After falling from its high of $124,000, Bitcoin has been stuck in a tight band between $110,000 and $113,000 since the end of August. Charts suggest that every pullback after rejection at $113,000 has been smaller than the last.
Market analyst Rekt Capital noted that this pattern signals sellers are losing control while buyers continue to build positions.
He said, "Bitcoin is attempting a breakout. A Daily Close and/or retest of the ~$113k region (red) would ensure additional trend continuation to the upside."
With key US economic data due this week, traders are watching closely. The outcome could decide whether Bitcoin breaks higher or slips back into its recent range.
Read Next:
- Millionaire Trader Snubs Dogecoin, Shiba Inu But Predicts ';Explosive Parabolic Move' For Meme Coins
