Bitcoin remains under pressure, trading just below the $120,000 level after a sharp breakout from a descending triangle.
Current Market Situation for Bitcoin
After two failed attempts to hold above $120,000, Bitcoin is now testing the same resistance for a third time. This retest has become a critical moment for traders, as failure here could lead to a significant shift in market sentiment. The price is currently ranging between $118,000 and $120,000, with bulls attempting to establish a foothold.
Risk Management and Open Positions
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.
Outlook and Key Price Levels
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. To maintain recent gains, Bitcoin must stay above $117,000, or the market may react with a broader correction.
Bitcoin remains in a state of uncertainty, where its upcoming movement hinges on trader reactions to key levels. Any potential shift in sentiment could dramatically influence the asset's short-term prospects.
