Bitcoin is Stuck at $116,000 and Needs a Strong Breakout Before it Can Move Higher, Says Bitfinex
Bitcoin Faces Resistance at $116,000, but New Catalysts Could Drive Next Move
Bitcoin is currently stuck around the $116,000 resistance level, according to Bitfinex analysts. The price is unlikely to break higher unless momentum returns.
At the moment, Bitcoin trades near $116,370 (CoinMarketCap data), slightly up from last week. However, it’s still below the record high of $124,100 reached on August 14. Many recent buyers who entered at $108,000–$116,000 are now at a loss, putting pressure on the price.
Fed Rate Cut Could Be Key
Investors are watching the U.S. Federal Reserve, which will announce its interest rate decision this week. Most expect a 0.25% cut.
- Optimists, like Fundstrat’s Tom Lee, believe this could trigger a “monster move” for Bitcoin and Ethereum over the next three months.
- Skeptics, however, warn that Bitcoin might first fall to $104,000 or even $92,000 before climbing to a new all-time high.
Rate cuts usually help risky assets like crypto, but analysts caution the market may have already priced in the news.
Q4 Could Bring a Boost
Another potential driver is the start of Q4 2025 (October 1). Historically, Q4 has been Bitcoin’s strongest quarter, averaging an 85% gain since 2013, according to CoinGlass.
Long-Term Holders Stay Confident
Bitfinex also noted that long-term holders remain strong. The recent dip to $107,400 on September 1 was mostly caused by short-term investors cashing out. Those who bought earlier in the year used the rebound to take profits, creating some resistance for further gains.
Market Sentiment
Currently, the Crypto Fear & Greed Index shows a neutral score of 53, reflecting mixed feelings among traders.
