Bitcoin Demand Builds at $117K: Cost Basis Distribution Defines Key Support Level

Bitcoin is consolidating between $115,000 and $120,000, with bulls maintaining control despite the lack of a breakout above $123,000. The $117,000 level has consistently attracted buying interest, acting as a key area where capital rotates into Bitcoin. According to Glassnode's BTC Cost Basis Distribution Heatmap, this level has dense clusters of cost basis activity, reinforcing its role as short-term support and a psychological anchor for bulls. As long as this zone holds, the risk of a full breakdown remains limited. However, repeated rejections near $120,000 and muted momentum raise concerns that upside exhaustion could eventually lead to deeper downside. If demand at $117,000 begins to fade, price may quickly revisit lower levels in search of fresh support. On-chain data shows that accumulation remains healthy, and this zone could be the foundation for Bitcoin's next attempt to reclaim the highs. The current market structure appears more measured due to regulatory progress and accelerating institutional adoption in the US. Bitcoin's calm price action may not last much longer, as Ethereum gains momentum and capital begins to rotate into altcoins. The 8-hour chart shows Bitcoin consolidating tightly between $115,724 and $122,077, with the price currently hovering around $118,762.