Bitcoin News Today: Bitcoin's $120K Showdown: Bulls and Bears Clash in High-Stakes Price Battle

Bitcoin's price has retreated below $120,000 amid heightened sell pressure, testing critical support levels and sparking renewed debate among analysts about the cryptocurrency's near-term trajectory. The pullback follows a brief retest of the $120,000 threshold, where bulls temporarily regained control but failed to sustain momentum above this key level. Technical indicators suggest a consolidation phase, with trading volumes dipping to $8.6 billion from $9.2 billion week-over-week, signaling reduced speculative activity and cautious investor behavior .

The recent volatility has been influenced by a mix of macroeconomic factors and institutional dynamics. A U.S. government shutdown delayed the release of critical economic data, including September jobs figures, leading traders to price in a near-certain 25-basis-point Federal Reserve rate cut by October 29. This expectation has weakened the U.S. dollar by 0.5%, redirecting capital flows into risk assets like Bitcoin. Spot Bitcoin ETFs absorbed $934 million in net inflows on October 2 alone, with Bitcoin-specific products capturing $627 million-a four-day consecutive inflow streak . Such institutional buying underscores growing acceptance of Bitcoin as both a speculative and hedging asset, particularly against inflation and currency devaluation risks.

Technical analysis highlights a double bottom pattern on Bitcoin's daily chart, formed by two valleys near $108,000 before a breakout to $126,000. This pattern, widely viewed as a bullish reversal signal, suggests that buyers intervened decisively at the $108,000 level, preventing further declines. However, the current price action indicates a tug-of-war between bulls and bears. Bitcoin's cumulative volume delta (CVD) metric, which measures net buying and selling pressure, remains negative at -$111.3 million, reflecting ongoing sell-side dominance despite a marginal improvement from -$243.3 million earlier in the month . Analysts caution that sustained price discovery above $120,000 will require a significant increase in spot trading volumes to validate the breakout.

Market sentiment remains polarized. On one hand, the crypto fear and greed index climbed to 63, entering the "greed" territory, reflecting a sharp recovery from mid-September levels of 28. This rebound suggests renewed risk appetite, with institutional and retail participants alike positioning for year-end upside. On the other hand, bearish indicators persist. Open interest (OI) in Bitcoin futures reached a record $88.7 billion, raising concerns about a potential "leverage flush"-a scenario where forced liquidations could trigger further sell-offs . Traders like BitBull predict such a flush could occur within one to two weeks, forcing short-term profit-taking before a subsequent rally.

Price targets vary widely among analysts. JPMorgan raised its year-end Bitcoin forecast to $165,000, while Citi and Pantera Capital set targets at $132,000 and $150,000, respectively, contingent on sustained ETF inflows and macroeconomic conditions . Technical analysts, meanwhile, highlight key levels: If Bitcoin breaks above $121,500, it could trigger a wave of liquidations extending toward $124,000, the prior all-time high. Conversely, a breakdown below $120,000 risks triggering stop-loss orders and pushing prices toward $115,000 or even $110,000 .

The broader crypto market has mirrored Bitcoin's mixed performance. While the total market cap neared $4.25 trillion-a 11% surge-most altcoins erased prior-week losses, with Zcash (ZEC) surging 175% on renewed interest in privacy coins and institutional products like Grayscale's Zcash Trust . However, Bitcoin's dominance remains central to the sector's outlook. As one of the primary benchmarks for digital assets, its ability to reestablish control above $120,000 will likely dictate the trajectory for both the broader market and altcoins in the coming weeks.

Source: [1] Bitcoin Price Dips Near $120K: Can the Rally Restart? (https://capwolf.com/bitcoin-price-dips-near-120k-can-the-rally-restart/)

[2] Bitcoin price reclaims $120K, targets new all-time highs; ZEC ... (https://invezz.com/news/2025/10/05/bitcoin-price-reclaims-120k-targets-new-all-time-highs-zec-leads-altcoins/)

[3] Bitcoin Remains Stuck Below $120K: What Will Trigger ... (https://cointelegraph.com/news/bitcoin-analysts-say-this-must-happen-for-btc-price-to-hit-new-highs)

[4] Will Record Open Interest Spark A Bitcoin Price' Liquidity Flush?' (https://cointelegraph.com/news/bitcoin-squeeze-record-88-billion-open-interest-flush-worries)