Bitcoin’s price action has traders on edge as the cryptocurrency struggles to break through the critical $118,000 resistance level. With short-term holders creating both support and selling pressure, and macroeconomic factors weighing on sentiment, the market faces a pivotal moment. Will Bitcoin break through or face a deeper correction?
Bitcoin Price Faces Tough Resistance at $118K
Bitcoin’s recent attempt to push past $118,000 has been met with strong resistance, creating anxiety among traders. Key factors influencing this battle include:
- Short-term holder (STH) activity creating support near $110,000
- Liquidation levels and supply imbalances between $117,000-$118,700
- Lack of strong volume to validate breakout attempts
Bitcoin Momentum Dampened by Macroeconomic Risks
External factors are adding pressure to Bitcoin’s price action:
| Factor | Impact |
|---|---|
| Strong US Dollar (DXY at 98.94) | Reduces risk appetite |
| 10-year Treasury yield at 4.35% | Limits potential for rate cuts |
| Upcoming Fed decision | Potential hawkish stance could hurt sentiment |
| Trade tensions | Adds market uncertainty |
Technical Indicators Show Mixed Bitcoin News
The technical picture presents conflicting signals:
- RSI at 49.8 (neutral)
- MACD histogram remains negative
- Potential bearish EMA crossover
- On-chain data shows whale distribution
What’s Next for Bitcoin Price Action?
Traders should watch these key levels:
- Upside: $119,500 as confirmation of bullish momentum
- Downside: $115,000 as critical support, break could lead to $111,000
Frequently Asked Questions
Q: Why is $118,000 important for Bitcoin?
A: This level represents a cluster of liquidation points and historical resistance, making it a psychologically significant barrier.
Q: How are short-term holders affecting Bitcoin’s price?
A: STHs provide support at lower levels but often sell into strength, creating resistance at higher prices.
Q: What macro events could impact Bitcoin next?
A: The Fed’s policy decision and potential trade tariffs are key events to watch.
Q: Is now a good time to buy Bitcoin?
A: With mixed signals, many analysts recommend waiting for clearer confirmation of direction.
