Bitcoin is currently testing a significant technical resistance zone between $117,000 and $118,700. Market analysts note that while the underlying bullish structure persists, upward momentum shows signs of weakening, prompting heightened market caution.
This resistance band presents a critical challenge for Bitcoin’s price trajectory. Failure to break through could trigger a market correction, while a decisive move above the zone would signal potential for further upside. Traders are closely watching this area, as historical patterns reveal transaction volume gaps and imbalances within the $117K-$118.7K range that often precede notable price shifts.
The role of short-term holders (STHs) is emerging as a crucial factor in navigating this juncture. STHs, holding coins for less than 155 days, are seen as instrumental in establishing near-term support and resistance levels. Their cost basis around $110,000 is considered a vital support floor, providing a buffer against deeper retracements.
Market sentiment reflects growing anxiety due to the resistance test, with participants awaiting either a breakout confirmation or a corrective move to clarify Bitcoin’s next directional move. Despite the structural bullish bias, the observed weakening momentum underscores the immediate strain at these resistance levels.
Short-term holders remain pivotal, influencing both potential price floors and acting as sellers around resistance zones, significantly shaping overall market dynamics during this period of consolidation and resistance testing.