Bitcoin's Next Bull Run Hinges on Breaking $118k Resistance → Insights

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Briefing

Bitcoin is currently consolidating around the $116,000 mark, with on-chain metrics indicating a critical juncture. A definitive break above $118,000 is poised to confirm a resumption of its bullish momentum, driven by historical support and resistance levels identified by advanced indicators. This suggests that the market is accumulating energy for a potential explosive move, with $117,000 acting as a key zone of indecision.

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Context

Many investors are wondering if Bitcoin’s recent price action, oscillating around $116,000, signals a loss of bullish momentum or if it’s merely a pause before a larger rally. Is the flagship cryptocurrency preparing for its next major move, or is it facing sustained resistance that could lead to a downturn?

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Analysis

On-chain analysis, utilizing indicators like the CVDD Channel and the Fibonacci-Adjusted Market Mean Price, reveals that Bitcoin is at a pivotal point. The CVDD Channel estimates historical price floors and risk zones based on coin destruction data, while the Fibonacci-Adjusted Market Mean Price identifies structural expansion and value zones. Both metrics pinpoint $117,000 as a significant resistance level, representing a zone of strong interest and indecision.

Historically, these indicators have accurately identified key support and resistance. A sustained move above this threshold, particularly a convincing break of $118,000, would signal a confirmation of bullish momentum, indicating that selling pressure is being absorbed and the path for further upside is clear.

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Parameters

Current Bitcoin Price → Around $116,000
Key Resistance Level → $117,000 – $118,000
On-Chain Indicators → CVDD Channel, Fibonacci-Adjusted Market Mean Price
Analyst → Joao Wedson, founder and CEO of Alphractal

Outlook

This on-chain insight suggests that Bitcoin is on the cusp of a potential extended rally in the near term, provided it can overcome immediate resistance. Investors should closely monitor the $118,000 level; a decisive breakout above this point would serve as a strong confirming signal for continued upward price action. Conversely, a failure to breach this level could indicate prolonged consolidation or a deeper correction.

Bitcoin’s path to a renewed bull run is confirmed by a clear break above $118,000.

Signal Acquired from → Mitrade (via search snippet)