Bitcoin faces resistance near $113k-$114k, with stablecoin ratio signaling short-term risk
Long-term metrics have been bullish, suggesting potential for sustained upside
Bitcoin’s [BTC] upward momentum is hitting its first real test soon. With the stablecoin ratio channel flashing signs of caution and the resistance forming near the $113k-$114k zone, short-term sell pressure may be cooking.
Temporary rotations into stablecoins could follow. However, beneath it all, the broader bull cycle may still be intact.
Bitcoin – Short-term signal flashes elevated risk
Bitcoin’s short-term outlook has been seeing its first signs of fragility. Its short-term stablecoin ratio channel climbed into historically risky territory, hinting at the possible formation of a local top. Such an uptick often precedes BTC-to-stablecoin rotations as traders lock in gains, especially near known resistance zones – In this case, the $113k-$114k range.
Source: Alphractal
The oscillator moved into the “overbought” zone on the chart – Bullish momentum could pause or even reverse temporarily. While not a definitive sell signal, it does mark a point of caution. With elevated ratios and strong price resistance aligning, short-term risk might be somewhat heightened.
Long-term structure still bullish?
Despite the short-term shakiness on the charts though, the long-term data seemed to tell us a different story.
Source: Alphractal
At the time of writing, the metric sat comfortably in the mid-range of its historical cycle – A zone that has previously acted as a consolidation or a healthy correction point, rather than a peak.
Liquidity has been supportive too, with ample stablecoin reserves still on the sidelines. That leaves room for Bitcoin to resume its uptrend after any short-term cooling. The long-term structure does not yet reflect distribution or late-cycle risk, affirming the idea that the broader bull market may still have legs.
What should you watch out for?
All eyes must stay on the $113k-$114k resistance zone – A level that coincides with elevated short-term risk.
A rejection here could trigger a wave of BTC-to-stablecoin rotations, leading to a healthy correction. On the flip side, a strong breakout above this range would invalidate short-term caution and bring momentum. Meanwhile, the long-term oscillator suggested there’s still room for upside, keeping the broader bull structure intact if liquidity remains favorable.
Samyukhtha L KM is a journalist with a keen eye on the ever-changing digital asset landscape - and a soft spot for memecoins. With a Bachelors in Commerce and a Masters in Journalism and Mass Communication, she’s always curious about whether the next big thing in blockchain is hype or history in the making. When she’s not tracking the latest market moves, she’s reflecting on what blockchain adoption really means in a world still largely rooted in traditional finance.