Bitcoin Faces Key Test at $117K On-Chain Support
Bitcoin's $117K on-chain support is under pressure. A breakdown could turn the current gap into a bottom formation zone.
- Bitcoin surged from $110K to $117K, creating a low-density zone.
- Price has held above this since reaching the $122.6K all-time high.
- A breakdown could see this zone act as a bottom formation area.
Bitcoin’s recent price movements have highlighted a critical area in its on-chain structure. The sharp rally from $110,000 to $117,000 created what analysts refer to as an “on-chain air gap”—a zone with relatively low transaction volume and accumulation activity. These gaps often form during rapid price climbs and can later become important reference points during corrections.
After peaking at an all-time high of $122.6K, Bitcoin has consistently maintained levels above the $117K mark. This suggests that the market sees this range as a strong support level. However, history shows that if such support breaks, the air gap can turn into a bottoming zone—where long-term buyers accumulate again before the next major move.
What Happens If $117K Fails?
The $117K level is more than just a psychological number. On-chain data reveals that there is minimal historical accumulation in this range. That means if Bitcoin loses this support, there might be little resistance on the way down, increasing the likelihood of a swift drop.
Still, there’s a silver lining. Past cycles have shown that similar air gaps eventually evolve into solid base zones. Investors begin to see value, accumulation resumes, and a new foundation is laid for future rallies.
Historical Patterns May Repeat
This situation mirrors previous Bitcoin market structures. In past bull runs, rapid rises often left behind low-density areas that later turned into consolidation bases. If $117K breaks, the zone between $110K and $117K could serve this function again.
Whether Bitcoin continues its upward trajectory or temporarily dips, this low-density zone remains a key area to watch. Traders and long-term investors alike will be eyeing it closely for signs of strength—or opportunity.
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