Bitcoin News Today: Bitcoin drops 0.59% after repeated rejections at $120,000 supply zone

Bitcoin’s price declined after failing to break through a key supply zone, with the cryptocurrency falling to approximately $117,000 at press time after a 0.59% drop in the past 24 hours. The correction followed a brief rally to a record high near $124,000, with analysts attributing the pullback to repeated rejections at the supply area [2]. This resistance region, identified as a marked zone on price charts, has proven critical in capping upward momentum. Sellers stepped in as the price approached this area, resulting in a consolidation phase with no confirmed breakout in either direction [1].

Analysts noted that the BTC/USD pair moved within a defined range on Monday, testing both highs and lows before retreating. This range-bound movement signaled a period of consolidation rather than a decisive upward push [1]. The inability to break above $120,000—identified as a crucial threshold—has kept the price confined in a technical standoff. A clean move beyond this level could open the door to higher price discovery, while a failure to do so increases the likelihood of renewed selling pressure [2].

The supply zone, referred to as a “red box” area on technical charts, has served as a persistent barrier for buyers. One analyst emphasized that unless the price could sustainably break above this level, the short-term bias would remain neutral to bearish [1]. The one-hour chart showed that if the Monday low held, a rebound toward the $121,000 fair value gap was possible [2]. However, given the repeated rejections, the probability of a sharp pullback to lower support levels increased.

On the downside, $114,700 emerged as a key level to monitor. This price aligns with a long-term ascending trendline visible on higher-timeframe charts and is often regarded as a significant technical marker where market participants reassess direction [1]. A break below this level could trigger further selling and signal a broader retest of earlier supports. Conversely, a close above $120,000 could shift market sentiment in favor of bulls, potentially unlocking a renewed rally toward previously projected higher targets [2].

The weekly Relative Strength Index (RSI) remained positioned for further gains, suggesting that bullish momentum had not yet been completely exhausted. However, analysts warned that a failure to hold the trendline could lead to increased volatility and a breakdown in the current equilibrium [1]. The market is currently in a holding pattern, with traders closely watching for a decisive break either above the supply zone or below key support levels.

At press time, Bitcoin remained in a critical phase of technical development, with no clear direction emerging. The standoff between buyers and sellers at key levels highlighted the importance of upcoming price action in determining the next phase of the market’s trajectory. The next decisive move would likely come from a confirmed breakout of either the $120,000 resistance or the $114,700 support, with each outcome potentially reshaping the short-term outlook for Bitcoin.

Source:

[1] Mitrade - https://www.mitrade.com/insights/news/live-news/article-3-1038744-20250814

[2] Mitrade - https://www.mitrade.com/insights/news/live-news/article-3-1044779-20250816

[4] Coinglass - https://www.coinglass.com/ru/news/534145

[5] TradingView - https://www.tradingview.com/ideas/supportandresistance/