Bitcoin forms new resistance near $116,000, may struggle to change before regaining upward momentum

ChainCatcher news, according to Cointelegraph, bitcoin has formed a new resistance level around $116,000, which may be difficult to break before regaining upward momentum. However, two potential catalysts could boost its price.

Tuesday's report shows that BTC is trading at the upper limit of the $116,000 range, and it remains a resistance until it is reclaimed. Since reaching a new high of $124,100 on August 14, bitcoin's upward momentum has weakened, and the price has fallen below the cost basis of recent high-entry buyers. Over the past seven days, bitcoin has seen a slight rebound, coinciding with the Federal Reserve's interest rate decision to be announced on Wednesday. The market expects a 96.1% probability of a 25 basis point rate cut, but opinions on bitcoin's movement after the rate cut are divided.

Although a Fed rate cut is generally positive for risk assets, if the market has already priced in the expectation, prices may still decline. In addition, the market is watching October 1, which marks the start of Q4 2025—a quarter that has historically been the best performing for bitcoin. Meanwhile, analysts say long-term holders remain confident, and recent selling has mainly been driven by those who bought in the past six months. Investors who accumulated between February and May have taken profits during the rebound, creating resistance for further upward momentum.