Bitcoin Faces $116,000 Rejection Despite Strong Stock Rally

As per the price analysis of Bitcoin, the world’s largest cryptocurrency is once again under pressure in the $116,000 region. Although traditional market indexes were able to reach all-time highs this week, Bitcoin could not extend above this major resistance suggesting possible short-term weakness.

This dissociation between equities and crypto is starting to be noticed by the trading community. The S&P 500 and NASDAQ are testing all-time highs. Now they are continuing their bullish run, but Bitcoin appears to be losing strength. Many analysts consider this a warning sign for crypto investors that risk-off sentiment is returning ahead of possibly volatile macroeconomic data and comments from central banks.

The short-term structure now looks fragile. For Bitcoin to reclaim a bullish market sentiment, it is necessary for it to hold the $113,500 mark. Otherwise, the price would likely continue to slide toward the next BTC support zone at approximately $111,000. Which is also where a CME gap is located, a level many traders are closely monitoring.

$BTC got rejected from its $116,000 resistance zone.

This is despite the stock market hitting new highs, which isn't a good outlook.

Bitcoin really needs to reclaim $113,500 level now; otherwise, it could dump towards $111,000 which also has a CME gap. pic.twitter.com/xIeu9pToXI

— Ted (@TedPillows) October 29, 2025

Rejection at $116,000 Signals a Short-Term Trend Shift

The temporary resistance of $116,000, suggests that a reversal may have begun from the Bitcoin uptrend. Over the last week, Bitcoin has repeated attempts to move above resistance but was unable to hold, which lead to quick rejections and an increase of selling pressure. 

In previous rallies, this Bitcoin resistance level has been an important resistance level. Market intelligence suggests that larger holders are capturing profits and institutions are taking defensive positions, which has exasperated market weakness.  The general consensus amongst traders is to look for Bitcoin to attempt to hold ATH above $113,500 before any larger downside moves. 

Why Reclaiming $113,500 Is Crucial for Bitcoin Bulls

The $113,500 level has now become the make-or-break point for short-term Bitcoin sentiment. Reclaiming it would signal renewed buying strength and possibly spark another attempt to test $116,000. However, a failure to defend this zone could trigger a slide toward the BTC support zone near $111,000.

The $111,000 area also represents an unfilled CME gap from earlier in the month, which often acts as a magnet for price corrections. Many traders view this level as a healthy retracement point before a potential rebound.

The RSI and MACD, two technical indicators, are showing initial signs of bearish crossover, suggesting some buyers may need to re-establish momentum quickly. A convincing close above $113,500 on the daily chart would negate the bearish thesis, but time is running out for the bull market to reinstate control.

Could Bitcoin Drop Toward $111,000 Next?

Should Bitcoin be unable to recover the $113,500 line soon, the next potential drop in price could be towards $111,000. The CME gap near that area remains untested and could pull price action when hit. Many traders would suspect a short correction there would better establish a stronger base to propel price higher.

However, if selling continues below $111,000, the market could experience corrective price action again. Even test levels as deep as $108,000 or even $106,500. Alternatively, a strong bounce above $113,500 would not only invalidate the setup to go lower, but bring into play re-testing hype around the Bitcoin resistance line at $116,000.