Bitcoin faces significant technical and sentiment challenges as it approaches the crucial $116,000 resistance level. Market data reveals dense sell order concentrations at this price threshold, creating formidable barriers for upward movement.
A substantial liquidity support zone exists between $112,000 and $113,800, where strong bid walls bolster the price. The $110,000 level remains a critical psychological and technical support floor that traders are vigilantly monitoring for signs of market stability.
Bitcoin ETFs recently witnessed a pronounced $812 million single-day outflow, signaling potential institutional profit-taking or risk-averse positioning. These netflows serve as a key sentiment barometer, with significant withdrawals often reflecting near-term market uncertainty.
Simultaneously, Bitcoin futures open interest has declined to multi-week lows, suggesting reduced leveraged positions and a consolidating derivatives market. This decreased activity typically precedes significant price movements as traders await clearer directional signals.