Bitcoin News Today: Bitcoin Stalls Near $118,000 as Key Support Levels Watched Closely

Bitcoin’s price has remained relatively stable around the $118,000 level in recent days, following a brief retreat from a record high of $124,100[4]. This consolidation, observed within a tight range of $117,200 to $118,500[2], has drawn attention from traders and analysts as they assess whether this is a temporary pause before a potential breakout or the beginning of a more bearish phase.

Crypto analyst Ali Martinez, using cost-basis distribution (CBD) data from Glassnode, has highlighted two key support levels at $117,500 and $114,500[1]. These levels represent clusters of investor entry points, suggesting that a significant number of Bitcoin holders bought the asset near these prices. Martinez argues that these levels could act as cushions if the price retraces, as investors may step in to buy at or near their cost basis to defend their positions.

Glassnode data indicates that 72,900 BTC and 56,201 BTC were acquired near $117,500 and $114,500, respectively[1]. This concentration of investor holdings implies that a break below $114,500 could trigger further downward pressure, as the next visible support appears to be out of sight. If Bitcoin falls below $114,500, it would be a bearish signal, signaling a potential deeper correction.

Currently, the price of Bitcoin stands at approximately $117,600, showing minimal movement over the past 24 hours[2]. This stagnation reflects broader market indecisiveness, with Bitcoin gaining only 0.7% over the past week according to CoinGecko[2]. The coin has been trading near the lower boundary of an ascending channel, which some traders see as a favorable accumulation point ahead of a potential rally[3].

However, not all analysts are bullish. Some warn that Bitcoin may have already reached its peak, citing a 4.8% drop from the recent high as a sign of deteriorating investor sentiment[4]. The ability to hold above $116,963 will be critical in the near term. A sustained move above $118,500 could signal renewed buying interest, while a break below this level may lead to further consolidation or a downward correction.

The broader macroeconomic environment, including U.S. inflation concerns and policy uncertainty, has also contributed to the cautious trading pattern seen in recent days[6]. As such, the coming weeks will be crucial in determining whether Bitcoin enters a new bullish phase or begins a more extended consolidation period.

Sources:

[1] https://www.newsbtc.com/news/bitcoin/bitcoin-price-holds-steady-around-118000-the-next-crucial-levels/

[2] https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-set-to-outperform-gold-as-kiyosaki-hails-it-as-peoples-money

[3] http://www.msn.com/en-us/money/markets/crypto-wrap-market-pulls-back-as-bitcoin-ethereum-retreat-mdt-and-avax-defy-trend/ar-AA1KCMkA?apiversion=v2&batchservertelemetry=1&domshim=1&noservercache=1&noservertelemetry=1&ocid=finance-verthp-feeds&renderwebcomponents=1&wcseo=1

[4] https://www.newsbtc.com/news/bitcoin/bearish-case-for-bitcoin-analyst-warns-macro-top-is-in

[6] https://cryptoadventure.com/bitcoin-rally-stalls-on-u-s-inflation-policy-whiplash-crypto-daybook-americas