Bitcoin Price Battles $118K Resistance: Will STHs and Macro Risks Derail the Rally?
Bitcoin’s price action is at a critical juncture as it struggles to break the $118K resistance level. With short-term holders (STHs) and macroeconomic risks weighing on momentum, traders are watching closely for the next big move. Will Bitcoin surge past this barrier, or are we in for a deeper correction? Let’s dive into the details.
Bitcoin Price Faces Strong Resistance at $118K
Bitcoin has been testing the $117,000–$118,700 resistance zone, but bullish momentum is fading. Key factors influencing this battle include:
- STH Activity: Short-term holders are stabilizing the market but also capping gains.
- Volume Gap: A notable liquidity void between $110K and $115K suggests $110K is a crucial support level.
- Liquidation Levels: The current resistance cluster aligns with high liquidation zones, making a breakout difficult.
Macro Risks Add Pressure to Bitcoin’s Rally
External factors are compounding Bitcoin’s challenges:
- DXY Strength: The U.S. Dollar Index (DXY) rose to 98.94, dampening risk appetite.
- Fed Policy: Hawkish expectations ahead of the July 31 Fed meeting could further suppress bullish sentiment.
- Trade Tensions: Potential tariffs from the Trump administration add uncertainty to global markets.
Technical Indicators Paint a Mixed Picture
Bitcoin’s technical outlook remains uncertain:
| Indicator | Value | Implication |
|---|---|---|
| 14-day RSI | 49.8 (Neutral) | No clear momentum bias |
| MACD Histogram | Negative | Bearish pressure persists |
| 50-day vs. 100-day EMA | Bearish Crossover | Potential downtrend signal |
What’s Next for Bitcoin Price?
Analysts are divided:
- Bullish Case: A breakout above $120K could trigger a historic rally.
- Bearish Risks: Weak stablecoin liquidity may stall gains near $122K.
Traders should monitor $115K support—a breakdown could lead to a drop toward $111K.
FAQs
Why is Bitcoin struggling at $118K?
STH selling pressure, macro risks, and liquidity gaps are creating strong resistance.
What happens if Bitcoin breaks $120K?
A sustained breakout could trigger a major rally, with targets extending beyond $130K.
How do macro risks affect Bitcoin?
Stronger DXY and hawkish Fed policies reduce risk appetite, limiting Bitcoin’s upside.
Is now a good time to buy Bitcoin?
Caution is advised until Bitcoin confirms a breakout or finds stronger support.
