Bitcoin News Today: Bitcoin Faces Head Fake as Price Retraces From $117,000 Resistance

Bitcoin is currently under pressure as it faces a potential head fake following a brief spike above $115,000. The price has since retreated to around $114,311, with resistance now forming at $117,000 and weak support levels between $113,000 and $108,000. Technical indicators suggest the recent price movement may be a false breakout, trapping bullish momentum before a sharp reversal becomes likely [1].

The volatility in Bitcoin's price has been driven in part by a Bollinger Band Squeeze, which historically precedes significant price swings. This pattern indicates a period of compressed volatility, often followed by a breakout—either genuine or deceptive. The current market setup, with limited support between $113,000 and $108,000, increases the likelihood of a sharp pullback should the upward trend fail to hold [2].

Crypto analyst Ali Martinez has highlighted the growing risks associated with the current market structure. According to Martinez, there is no meaningful price support in the $113,000 to $108,000 range, which heightens the potential for a rapid decline if downward momentum intensifies. If the market continues to weaken, the $95,000 level could become a key target for Bitcoin [3]. The resistance at $117,000 is historically significant, as past attempts to break above it have ended in failure, further supporting the head fake narrative [4].

External macroeconomic factors are also playing a role in the uncertainty. Heightened trade tensions and policy changes are contributing to the broader volatility in financial markets. These developments have made it difficult for investors to gauge whether Bitcoin’s recent price action is part of a larger bullish trend or a temporary spike that will reverse quickly [5].

The situation is further complicated by the limitations of traditional financial instruments in tracking such movements. The Bollinger Band Squeeze, a key indicator of potential volatility, occurs primarily during weekends and holidays—periods when most ETFs are not trading. As a result, ETF price charts may not accurately reflect the true volatility and price action in the cryptocurrency market [6].

For traders, the current environment calls for caution. The market appears to be in a tight range, with limited directionality and a high probability of reversal. Those who have entered long positions may want to consider stop-loss orders to mitigate potential losses. Meanwhile, short-term traders are closely watching for confirmation signals that could validate the head fake or indicate a more sustained bullish breakout [7].

In summary, Bitcoin is at a critical juncture with resistance at $117,000 and weak support below. A potential head fake suggests the need for careful monitoring of both technical and macroeconomic signals. The market remains highly sensitive to broader economic developments, and the outcome will likely depend on whether Bitcoin can confirm a sustained move above key resistance levels.

Source:

[1] [Bitcoin Faces Potential Head Fake Amid Resistance at $117K and Weak Support Levels](https://en.coinotag.com/bitcoin-faces-potential-head-fake-amid-resistance-at-117k-and-weak-support-levels/)