- Bitcoin faces strong resistance at $116K, with liquidity building before a potential breakout or pullback.
- A decisive move above $116K could signal a bullish rally, while failure may lead to a deeper correction.
- Traders are watching key support levels, as Bitcoin must reclaim $113,500 to avoid further downside risks.
Bitcoin is in the neutral-to-bullish consolidation period and is caught between the 100-day and 200-day moving averages. The resistance level at $116K remains strong and does not allow a major upward movement. Bitcoin is also expected to remain in its market range as it waits until it overcomes this resistance, where its liquidity will accumulate ahead of the next significant price move.
As of press time, Bitcoin (BTC) is trading at $110,067, a 2.68% decrease in the past 24 hours. Nonetheless, trading volume has gone up by 5.53%, which currently stands at $70.57 billion. Bitcoin is slightly bullish, increasing 0.46% over the last week. However, the market is on the edge of a strong breakout of the level above the 116K resistance or falling back to the lower levels of support.
Source: CoinMarketCap
Bitcoin’s Struggle at $116K Resistance Could Lead to Price Correction
Crypto analyst Crypto Patel highlighted that the failure of Bitcoin to overcome the 116K-117K resistance zone is an indication that it is in a bearish mood below that point. Unless BTC breaks above $116K, the virtual currency may begin to experience a correction back to lower price levels, including $105K, $93K, and $76K.
Source: X
Nevertheless, if cryptocurrency breaks above $117K, it could overturn the bearish forecast and trigger an increase towards $150K or even higher.
Also Read: XRP Mirrors 2017 Cycle, Eyeing a Monumental $27 Breakout Rally
Additionally, another analyst, Ted Pillows, mentioned that BTC recently had a test of the zone of support of $107K to $108K, where it was able to bounce back. Regardless of the recovery, Pillows stressed that Bitcoin needs to regain the $113,500 zone, otherwise it can undergo a more severe correction. Closing below this level by Bitcoin’s weekly close would increase the chances of a deeper pullback.
Source: X
Trading Volume and Open Interest Rise, Market Remains Cautious
According to the CoinGlass data, the trading volume has increased by 30.46% to $149 billion. Open interest has also gone up by 0.33% to $73.79 billion. The BTC OI-weighted funding rate is 0.0048%, which shows a neutral market sentiment. These numbers indicate that the market activity is rising.
Source: CoinGlass
The price of the BTC is at a very critical point. As the $116K resistance has held and support zones are under test, the coming days may also decide the trend in which token is going to move forward. Traders are on the lookout to determine whether Bitcoin will go beyond important levels or not.
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