Bitcoin News Today: Bitcoin's 0.2% Weekly Gain Sparks Key $121K Liquidation Wall Test

Bitcoin’s price trajectory has reached a pivotal juncture as traders monitor a critical liquidation wall near $121,100, which could determine the asset’s near-term direction. With Bitcoin (BTC) trading at $118,456—a 0.2% rise over the past week—the market remains in a tight range, oscillating between support at $117,697 and resistance at $120,222. Recent liquidation data from Binance and Coinglass highlights a $14.39 million concentration of leverage at $121,100, signaling intensified activity that may test the resilience of this level. Analysts note that the accumulation of liquidations at this price point could either catalyze a rebound or reinforce downward pressure if further liquidity triggers sell-offs [1].

The liquidation heatmap reveals a stark shift in market dynamics. From late January to July 2025, total liquidations fluctuated with price swings, peaking at $565 million in late February during a sharp downturn that disproportionately impacted long positions. However, short liquidations surged in July, at times exceeding $200 million, indicating bearish traders are being forced out as Bitcoin stabilizes near $120,000. This divergence from earlier patterns suggests growing bullish momentum, though the asset’s sideways movement reflects reduced volatility compared to earlier in the year. Coinglass data underscores that liquidation concentrations cluster near major price thresholds, particularly $120,000, where a breakout could target $125,000, while a failure to clear this level risks renewed consolidation between $117,000 and $120,000 [1].

The $121,100 level, highlighted by trader Ali on Twitter, acts as a psychological barrier with structural significance. A sustained break above this level could absorb the liquidation wall, potentially easing upward momentum. Conversely, renewed selling pressure might trigger cascading liquidations, dragging prices back toward support zones. Market observers emphasize the interplay between the $120,222 resistance and the $117,697 support, which have formed a defined trading range. While the support level has held steady, the resistance remains a key obstacle, with its integrity crucial for maintaining a bullish bias [1].

Short-term volatility remains a central theme. The shift from long-heavy liquidations in February to short-dominant activity in July reflects evolving market sentiment. Traders are now more cautious about downside risks, but the persistent buying interest near $120,000 suggests accumulation by bulls. The Coinglass chart illustrating BTC’s price and liquidation trends reinforces this narrative, showing a steady price line around $118,000–$120,000 with liquidation volumes skewed toward short positions. This dynamic could foreshadow a potential reversal if short-sellers are squeezed further, though the market’s ability to sustain gains above $120,222 remains untested [1].

The broader implications hinge on liquidity flow. If institutional or retail buying intensifies near the $121,100 wall, it could dissolve the liquidation risk and unlock a new phase of upward movement. However, without a clear break above $120,222, Bitcoin may remain range-bound, with the $117,697 support serving as a critical floor. Analysts caution that while the current momentum favors buyers, the lack of a decisive breakout underscores the need for patience. The liquidation data, though indicative of short-term volatility, does not yet provide a clear signal for a sustained trend [1].

Source: [1] [Bitcoin Faces Key Test at $121K as Liquidation Wall Threatens Rebound Momentum] [https://cryptonewsland.com/bitcoin-faces-key-test-at-121k-as-liquidation-wall-threatens-rebound-momentum/]