Bitcoin is balancing once again on the edge, attempting to hold above a significant level at $120,000 after breaking through long-term resistance. Currently, bearish sentiment is rising, which may impact the market's future dynamics.
Current Bitcoin Price Situation
After a sharp breakout from a descending triangle, Bitcoin has been consolidating in the $118,000-$120,000 range. Recent weeks have shown a noticeable shift towards bullish sentiment driven by high trading volume and a sustained increase in higher lows.
Liquidation Risks and Key Levels
The latest CoinGlass liquidation heatmap indicates two key zones - $117,000 and just above $122,000 - packed with more than $100 million in open interest. If Bitcoin falls below this support, it may trigger a concentration of long positions leading to a cascade of liquidations.
Prospects for Bitcoin Growth
Should Bitcoin successfully break above the $122,000 level, it could lead to new all-time highs, and bulls may then target the $130,000-$135,000 range. The current situation is critical as maintaining control above $117,000 is essential to avoid another drop.
Thus, Bitcoin stands at a crossroads between potential growth and liquidation risks. The future of the cryptocurrency market will depend on whether it can hold above the key $120,000 level.
