Bitcoin News Today: Bitcoin Hovers Near $120K Psychological Threshold as Weak Trend Signals and Split Market Sentiment Test Key Levels

Bitcoin stands at a pivotal crossroads as it fluctuates near the $120,000 psychological threshold, with market participants closely monitoring whether the cryptocurrency can sustain bullish momentum. The digital asset, currently trading at approximately $119,765, faces a critical test against a descending trend line that has historically constrained upward movement since mid-July. This level has emerged as a focal point for traders, with prediction markets and technical indicators pointing to a week of decisive price action.

Technical analyses highlight a mixed picture for Bitcoin’s near-term trajectory. The Squeeze Momentum Indicator on the 4-hour chart indicates volatility compression, a common precursor to a sharp directional move. However, the asset’s sideways consolidation suggests a tug-of-war between buyers and sellers. The Average Directional Index (ADX) at 13, below the 20 threshold, signals weakening trend strength, raising the likelihood of false breakouts around key levels. Meanwhile, the Relative Strength Index (RSI) at 59 reflects moderate bullish momentum without reaching overbought territory, indicating a balance between buying pressure and caution.

The price action near $120,000 has become a classic inflection point, according to market observers. Traders remain divided on whether Bitcoin will maintain its position above this level or experience a short-term pullback. The 50-day Exponential Moving Average (EMA) near $116,000, positioned above the 200-day EMA, supports a medium-term bullish outlook. However, declining volume and a low ADX underscore the need for caution as the market navigates this critical juncture.

Key price levels will play a decisive role in shaping Bitcoin’s near-term direction. Immediate resistance at $120,000 serves as a psychological and technical barrier, with a sustained breakout potentially targeting the recent all-time high of $122,838. Conversely, support near $117,500—identified as the Volume Profile Point of Control—offers a potential floor in case of a correction. Traders are advised to monitor these levels closely, as a breakout or rejection could trigger heightened volatility in the coming days.

Market sentiment remains split, as reflected in the Myriad prediction market. With nearly even odds currently favoring bears at 53%, traders signal uncertainty about Bitcoin’s ability to hold above $120,000 by week’s end. This sentiment aligns with the technical analysis, where the absence of a strong directional trend and fluctuating on-chain data highlight the market’s indecision. Analysts emphasize the importance of watching both price action and sentiment metrics to gauge the resolution of this critical phase.

Bitcoin’s performance this week will likely determine its immediate trajectory following a surge past $122,000. While medium-term technical indicators suggest a resilient upward structure, the confluence of mixed momentum metrics and divided market sentiment creates a high-stakes scenario. Investors are urged to maintain a balanced approach, prepared for either a sustained bullish breakout or a corrective phase. The coming days will test whether the $120,000 level serves as a catalyst for further gains or a turning point for a short-term consolidation.