Bitcoin recent attempt to decisively break above the significant $120.000 to $121.000 supply zone has met with robust selling pressure, forcing the digital asset to retreat and consolidate within its recent trading range. This pullback underscores the persistent challenge Bitcoin faces in sustaining upward momentum, leaving market participants to assess the immediate future trajectory.
Resistance Reaffirmed Above $120K
Following a brief surge that saw Bitcoin’s price touch approximately $122.446, a wave of selling quickly pushed the cryptocurrency back down. This rejection firmly establishes the $120.000–$121.000 region as a formidable resistance level, where sellers have consistently overpowered buyers, limiting any sustained advance. The price has since reverted to trade within the range established on Monday, oscillating between a high of $122.446 and a low of $118.063. This movement, characterized by swift ‘liquidity sweeps’ on both the upside and downside, suggests a period of market indecision rather than a clear directional trend.
For the short term, the market sentiment for Bitcoin remains neutral to bearish. Until this critical $120.000–$121.000 area can be successfully converted from a resistance to a reliable support level, upward momentum is likely to be capped.
Key Levels and Potential Scenarios
Market analysts are closely monitoring specific price levels to gauge Bitcoin’s next major move. Two primary scenarios are currently being considered:
- Bullish Scenario: A renewed upward push could occur if the low established on Monday holds steady on the hourly chart, and Bitcoin manages to reclaim and hold above the $120.000 threshold. Should this occur, the price could revisit the $122.446 high, paving the way for further gains if the red supply zone is decisively breached.
- Bearish Scenario: Conversely, if the $120.000–$121.000 range continues to repel price advances, a deeper correction could unfold. In this event, the first significant support level to watch is $114.700. This point is anticipated to attract renewed buying interest and could serve as a floor for a temporary rebound.
Additionally, recent price action created a “fair value gap” near $121.000. Such gaps often act as magnets for price, suggesting that even amidst a downtrend, a retest of this level remains a possibility. However, without a confirmed breakthrough of overhead resistance, the prevailing pressure is expected to remain skewed towards the downside.
Bitcoin’s current market structure reflects a struggle for dominance between buyers and sellers, with the former defending the lower boundaries of the range and the latter staunchly defending the upper limits. A definitive move beyond Monday’s trading range will likely serve as the catalyst for Bitcoin’s next significant directional shift.
Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Investors should always conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions in cryptocurrencies, which are highly volatile and speculative assets.
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