Bitcoin recently attempted to break above the key resistance level of $120,000 but failed to maintain momentum once again. This has created a neutral to bearish outlook for the asset in the short term.
Current Market Condition of Bitcoin
Bitcoin has attempted a breakout above the $120,000 resistance level, but once again it couldn’t break through. Sellers have rejected this level, indicating a bearish sentiment in the short term.
Key Levels to Watch
A key level for traders to watch is the low of Monday's trading session. If Bitcoin can hold above this on the 1-hour chart, a retest of the resistance zone near $120K could be possible. More specifically, there is a fair value gap (FVG) around $121,000 that could serve as a short-term target.
Bullish Market Prospects
Despite short-term fluctuations, the broader bullish narrative relies on a clean break above the $120K resistance turning into support. Until that happens, most traders remain cautious or slightly bearish.
In the absence of a confirmed breakout above the $120K zone, Bitcoin remains in a precarious position that could lead to volatility in the future. Traders should keep a close watch on key support and resistance levels.
