- Bitcoin price is testing $116K resistance, with a breakout potentially driving prices towards $120K or higher.
- Market volume is up 30%, signaling increased trader activity as Bitcoin nears key resistance at $116K.
- Options volume surged 50%, indicating heightened volatility as Bitcoin pushes toward the $116K level.
Bitcoin price is trading just above the current price of about $113.98K, and it is making a good drive towards the crucial resistance level of about $116K.This has proven to be a challenging resistance to Bitcoin over the past few weeks, and traders are eager to see whether it can break over it and keep building momentum.
Bitcoin Price Key Resistance and Support Levels in Focus
The $116k resistance is being tested by Bitcoin, and a breakout may result in a price rally up to $120k or even more. Nevertheless, when the price does not break this resistance then a pullback occurs. Support can be observed at an immediate level of $113k with stronger levels being noticed between $110k and $112k.
Source: Michaël van de Poppe/X
At this time, Bitcoin price is above the 50-day EMA at $113,000 and the 200-day EMA at $106,000, which indicates that the bullish swing is still being carried on. Bitcoin price has burst out of the $110k-$112k range, signifying a strong case in favor of the bullish trend, provided Bitcoin stays above these ranges.
Market Activity and Liquidity Indicators
The market volume of Bitcoin has grown by 30% to the current level of $80 billion, indicating that a strong market is getting ready to be prey to future price swings. On the same note, open interest has been escalating, implying that traders are gearing towards a potential breakout.
Specifically, the options volume has escalated by 50%, indicating anticipation of increased volatility with Bitcoin price pushing towards the $116k resistance threshold. The increase, together with an increment in options open interest, is a sign that the traders are hedging or speculating on a substantial price reversal in either direction.
Source: Coinglass
Moreover, over the last day, long positions have been liquidated by $25 million, which is an indicator of increased tension and volatility in the market. As the volume, options volume, and open interest rise, Bitcoin price is probably entering a phase of intense market movement, with its next move potentially initiating a sharp move relative to volatility.
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