Bitcoin News Today: Bitcoin near $118K–$120K faces key resistance amid bearish reversal risks

Bitcoin's recent price movements have sparked renewed debate among analysts, particularly as the cryptocurrency approaches a critical resistance zone near $118,000 to $120,000. According to technical analysis from crypto analyst Melikatrader, a sharp reversal appears likely if prices test this supply-heavy area [1]. The price action has shown a dramatic swing, with Bitcoin briefly reaching a new all-time high before retracting to levels it occupied before the recent surge [1]. This pattern suggests that bearish forces are reasserting themselves, with sellers becoming increasingly active [1].

The recent break below the lower trendline of an ascending channel—characterized by higher highs and higher lows—has raised alarms among traders [1]. This technical development signals weakening buying momentum and growing downward pressure. Analysts note that this pullback reflects an environment where profit-taking and supply pressures are outpacing fresh buying interest [1]. The immediate focus is now on the $118,000 to $120,000 supply zone, which has historically drawn significant selling activity [1].

Two distinct price scenarios have been outlined by Melikatrader. In the first scenario, Bitcoin could stage a rebound toward the $118,000 level, potentially attracting buyers with the appearance of a recovery. However, once this level is reached or breached, selling pressure is expected to intensify, leading to a sharp reversal. The likely support level in this case is around $115,800, a price where previous buying interest was strong [1].

The second scenario involves a rebound pushing slightly higher, near the $120,000 threshold. Despite this elevated entry point, the same dynamics are expected to unfold. Sellers are likely to re-enter the market, locking in profits and pushing prices back downward. In both cases, the price is expected to retreat to the $115,800 level, reinforcing its role as a key support zone [1].

These scenarios highlight the growing dominance of bearish sentiment. The break of the lower trendline is seen as a turning point, increasing the risk of further declines following temporary rallies [1]. Traders are advised to closely monitor both the resistance near $118,000–$120,000 and the support at $115,800. Volatility is expected to remain high, with sharp price swings becoming a common feature [1].

While the short-term outlook is bearish, some analysts argue that long-term fundamentals remain intact. Institutional interest and macroeconomic conditions, such as positive inflation data, could still support Bitcoin in the months ahead. Bullish forecasts suggest the possibility of new all-time highs if the price can hold critical support levels [1].

However, the current price action points to a market in flux, with buyers struggling to overcome a well-defined supply zone. The risk of a "false recovery"—a rally that quickly reverses—remains high. Traders are being urged to remain cautious and to watch for signs of strength or breakdown at the key levels outlined by analysts [1].

Source: [1] Bitcoin Faces Key Resistance Near $118K-$120K With Potential Sharp Reversal Ahead (https://cryptocoin.news/news/bitcoin-faces-key-resistance-near-118k-120k-with-potential-sharp-reversal-ahead-134192/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-faces-key-resistance-near-118k-120k-with-potential-sharp-reversal-ahead)