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 Financial Journalist and Market Analyst at AMBCrypto whose work is defined by one central question: Is the latest trend in blockchain hype, or history in the making?
Her expertise is built on a strong academic foundation, with a Master’s in Journalism and Mass Communication from Amity University and a Bachelor’s in Commerce from the University of Madras. This dual qualification equips her with a unique skill set: the financial acumen to dissect market mechanics and the journalistic rigor to investigate and communicate complex subjects with clarity.
Samyukhtha specializes in analyzing the socio-economic impact of blockchain adoption and assessing the viability of new market narratives. This includes a focus on high-velocity, community-driven assets such as memecoins, where she evaluates sentiment and fundamentals. She is dedicated to providing readers with insightful, well-researched commentary that looks beyond immediate market moves to understand the long-term implications of decentralized technology.
