- Bitcoin battles $120,000 resistance as traders brace for liquidation risks.
- Key levels at $117,000 and $122,000 hold massive open interest.
- A breakout or breakdown could reshape Bitcoin’s short-term outlook.
Bitcoin is holding onto a fragile position as it trades just below the $120,000 level after a sharp breakout from a descending triangle. Despite recent bullish momentum, the asset remains trapped in a high-stakes consolidation phase that could define its next major move.
Following two failed attempts to hold above $120,000, Bitcoin is now testing the same resistance for a third time. This retest has become a pressure point for traders as failure here could spark a major shift in sentiment. The price is currently ranging between $118,000 and $120,000, with bulls trying to establish a foothold.
According to data from CoinGlass, this zone is surrounded by liquidity clusters that increase the risk of volatility. Over $100 million in open interest sits just below $117,000, creating a dense layer of long positions. A drop beneath this level may activate a wave of liquidations, accelerating losses and potentially sending Bitcoin down to the $110,000–$108,000 region.
Source: Coinglass
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Tight Range Triggers Caution as Key Price Zones Attract Heavy Open Interest
At the same time, a resistance wall has formed above $122,000, which could act as a liquidity magnet if bulls push the price higher with volume support. A confirmed breakout past $122,000 would be a key technical shift, signaling the potential for a broader move toward the $130,000–$135,000 range.
This makes the current range one of the most sensitive trading zones in recent Bitcoin history. The market structure remains neutral but heavy with tension. If the asset breaks above $122,000, it could spark renewed bullish interest. However, failure to stay above $117,000 may unravel recent gains and lead to broader correction.
The battle between buyers and sellers continues to play out in real time, with liquidations looming on both ends. For now, the price action remains volatile, and any sharp move could reshape the short-term outlook. Bitcoin’s fate is hanging in the balance as traders brace for a potential shakeup.
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