Bitcoin is currently facing resistance at the $116.9k level the cost basis for short-term top buyers. This is the average price paid by investors who entered near recent highs, and it often acts as a critical pivot zone.
When $BTC trades below this cost basis, short-term holders are in unrealized loss territory, which can increase selling pressure as they try to exit at break-even. The longer BTC stays under this level, the higher the probability of:
Extended consolidation as buyers and sellers battle for control.
A deeper correction toward the lower $110k region if momentum weakens.
From a market psychology perspective, short-term holders tend to react faster to price movements than long-term investors. If they lose confidence, the sell-off can accelerate.
đ Key things to monitor:
Whether BTC can reclaim $116.9k on strong volume.
The $110k support zone a critical defense line for bulls.
Funding rates and derivatives positioning for signs of excessive leverage.
For now, BTCâs inability to break above this cost basis suggests the bulls need more conviction before another leg higher. Until then, consolidation or a retest of lower supports remains on the table. $BTC
