Bitcoin has recently experienced significant trading activity, as exchange-traded funds (ETFs) attracted inflows totaling $2 billion over a six-day period. The question on the minds of many traders is whether this influx will propel Bitcoin’s price toward the notable resistance level of $118,000.
Current market analysis highlights that Bitcoin’s struggle to break past the $118,000 mark signals strong resistance at this price point. Following a notable 9% increase from a low of $107,270 registered on September 1, BTC has encountered obstacles near $118,000, suggesting sellers are actively defending this territory. According to Michael van de Poppe, founder of MN Capital, the critical resistance threshold is actually set at $117,500. He notes, “If that breaks, we’ll be in a great territory for a potential new all-time high (ATH).” On Tuesday, Bitcoin was trading at approximately $115,300, indicating a balance between bullish and bearish sentiments as investors awaited crucial economic updates.
With the Federal Open Market Committee (FOMC) meeting approaching, traders are taking a cautious stance, focusing on the upcoming meeting minutes and remarks from Fed Chair Jerome Powell. Analyst AlphaBTC suggests there could be a move up to $118,000 within the next 24 hours, followed by a possible retreat contingent on the FOMC rate decision. The BTC/USDT liquidation heatmap indicates a concentration of liquidations around the $118,000 level, confirming its status as a key resistance area and potentially affecting trade behavior.
Market analysts emphasize the importance of this particular price level, stating it could act as a magnet, attracting price movements to exploit the liquidity before undergoing a possible pullback. AlphaBTC notes, “This area looks really juicy from a liquidity point of view,” supporting expectations for a run to $118K in the near term.
Despite the price volatility, factors such as sustained inflows into Bitcoin ETFs and increased accumulation by corporate entities signal a bullish sentiment for Bitcoin’s future. Recent data reveals that strategic reserves and ETF holdings have surged by 30% in 2025 alone, rising from 2.24 million BTC at the start of the year to 2.88 million BTC currently. This trend showcases a steady consolidation of Bitcoin supply among major institutional players, which could contribute positively to Bitcoin’s price trajectory.
According to a report by market intelligence firm Glassnode, U.S. spot Bitcoin ETFs recorded significant daily inflows, with approximately 5.9k BTC added on September 10, the largest amount since mid-July. This continuous demand has shifted total net flows into a positive position, reflecting an invigorated interest in Bitcoin investment products. Furthermore, recent data from CoinShares shows that Bitcoin was the primary asset for inflows into exchange-traded products (ETPs) over the past week, with BTC investment products capturing a remarkable $2.4 billion, highlighting institutional appetite for the cryptocurrency.
While market dynamics will ultimately dictate Bitcoin’s price movements, the combination of institutional interest and strategic ETF inflows presents a foundational support system for BTC as it navigates these pivotal resistance levels. Investors are urged to keep a close watch on the market, as developments unfold post-FOMC.
Disclaimer: The content in this article does not constitute investment advice. Every trading decision involves risk, and readers are encouraged to conduct their own research prior to making any financial commitments.
