Bitcoin Price Targets Critical $117,000 Resistance Level After Daily Recovery

Bitcoin Shows Signs of Life Despite Weekly Decline

The Bitcoin price is demonstrating renewed strength with a 1.1% daily gain, currently trading around $114,000. However, the broader picture reveals a 3.77% weekly decline, leaving traders questioning whether this represents a temporary bounce or the beginning of a sustained rally.

Key Resistance at $117,000 Could Determine Next Move

Market analysts are closely monitoring the $117,000 level, which represents a crucial resistance zone for Bitcoin. This price level has historically acted as a significant support and resistance area, with maximum trading volume concentrated above this threshold.

If Bitcoin successfully breaks above $117,000, it could trigger the next major rally phase. Failure to clear this resistance may result in another failed breakout attempt, keeping the cryptocurrency trapped in a choppy trading range.

On-Chain Metrics Signal Potential Bullish Setup

MVRV Ratio Indicates Undervaluation

The Market Value to Realized Value (MVRV) ratio currently sits at 2.19, echoing historical setups that preceded significant Bitcoin rallies. This metric compares Bitcoin's market capitalization to its realized capitalization, helping identify whether the asset is overvalued or undervalued.

An MVRV ratio of 2.19 suggests Bitcoin may be undervalued relative to its fair value, potentially creating favorable conditions for price appreciation.

Long-Term Holders Reduce Selling Pressure

Recent on-chain data reveals that long-term Bitcoin holders have significantly reduced their selling activity. This decrease in selling pressure from strong hands typically indicates accumulation phases and can support upward price momentum.

When long-term holders stop selling, it often signals confidence in Bitcoin's future prospects and removes a major source of downward pressure on the market.

Trading Sentiment Shifts Bullish

Market participants are increasingly adopting long positions, reflecting growing optimism about Bitcoin's near-term price trajectory. This shift in trader sentiment, combined with technical and on-chain indicators, suggests building momentum for a potential breakout.

Technical Analysis Points to Critical Juncture

Bitcoin's current price action places it at a pivotal technical level. The cryptocurrency must overcome the $117,000 resistance to confirm a bullish reversal and avoid another period of sideways consolidation.

Support and Resistance Levels

The zone above $117,000 contains the highest concentration of trading activity, making it a critical level for determining Bitcoin's next directional move. This area represents both opportunity and risk for traders positioning for the next major price movement.

Market Outlook and Risk Assessment

While current indicators suggest potential for upward movement, Bitcoin remains vulnerable to rejection at key resistance levels. Traders should monitor volume and momentum indicators to confirm any breakout attempts above $117,000.

The combination of reduced long-term holder selling, favorable MVRV readings, and shifting trader sentiment creates a potentially bullish setup. However, Bitcoin must prove its strength by clearing significant resistance levels to validate these positive signals.

Conclusion

Bitcoin's recent bounce from lower levels brings it to a critical inflection point at $117,000 resistance. With on-chain metrics showing reduced selling pressure and favorable valuation ratios, the cryptocurrency appears positioned for a potential rally. However, the success of any upward movement will depend on Bitcoin's ability to break through established resistance levels and maintain momentum above key technical thresholds.

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