Price Analysis
  • Shrishesh Tanksalkar
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    Shrishesh is a versatile writer with 2+ years of experience in cryptocurrencies. An engineer turned storyteller, this selective introvert is a wannabe biker on weekends.

    • 2 minutes read

    Bitcoin Price Builds Support on Dips, Can $116k Break Unlock the Next Rally?

    Story Highlights
    • Accumulator demand surges to 2025 highs, boosting investor trust

    • $109k–$116k sees steady buy-ins, minimal selling seen at $118k–$120k

    • Bitcoin price struggles near $115k, with upside potential on $116k breakout

    Bitcoin price is trading in a tight range, coiled between heavy accumulation and strong resistance. As the price hovers around $114k, both technical and on-chain data suggest an inflection point is near. With demand from long-term holders soaring and short-term momentum indicators showing weakness, the crypto market braces for a decisive move. The $116k level is now the focal point for bulls and bears alike. Join me as I take you through on-chain metrics and analyst views in this write-up.

    BTC Cost Basis Heatmap:

    Glassnode’s Cost Basis Distribution Heatmap shows a staircase-like pattern between $109k and $116k, filled progressively over the last month. This steady buying pressure illustrates growing investor confidence, especially as dips into this range are consistently absorbed. Meanwhile, the $118k–$120k zone shows little sign of distribution, implying that holders are not willing to exit at these levels, suggesting a “wait-and-hold” mentality.

    GlassNode BTC Cost Basis Distribution Heatmap

    According to Alva, BTC is in a classic squeeze zone, compressed between stepwise support and a thick resistance wall. Options activity is heating up, indicating at an imminent move. Although recent ETF outflows and miner profit-taking near $117k caused some hesitation, macro narratives like BTCFi adoption and traditional finance interest continue to offer strong tailwinds. The AI warns that if BTC doesn’t reclaim the $116k mark soon, oversold indicators like the CRSI could invite volatility and a swift drop to lower support levels.

    Demand from Accumulator Addresses:

    CryptoQuant data shows that accumulator addresses are more active than ever in 2025. The 30-day net accumulation has surged past 320k BTC, showing renewed confidence in BTC’s long-term upside. Since May, price action has closely followed the trajectory of accumulator demand. This strong base of buyers provides a safety net, especially if price revisits the $110k–$112k range. Which Glassnode and the AI agent both view as a “brilliant” accumulation zone.

    Crypto Quant BTC accumulator addresses

    The alignment of increasing long-term demand and layered cost basis support reinforces the argument for an upward breakout, should BTC cross above the $116k threshold.

    Michael Pope: Eyes on $115k–$116k Resistance

    Crypto analyst Michael Pope highlighted BTC’s recent failure to crack $115k, calling it the “first real resistance.” While the structure looks bullish, a confirmed breakout above $116k is essential to shift momentum. Pope notes that the previous rejection was minor and suggests another attempt is likely. If successful, BTC could swiftly move back into the $118k–$120k range, reigniting talk of a new all-time high.

    Michael BTC Analysis 5-8-25

    FAQs

    Why is the $116k level crucial for Bitcoin?

    It represents the top of strong on-chain support and could trigger a breakout toward $120k.

    What does rising accumulator activity mean?

    It signals growing long-term holder confidence, reinforcing price support on dips.

    What’s the risk if BTC fails to hold $114k–$116k?

    BTC could revisit $110k-$112k, which analysts view as a strong accumulation opportunity.

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