Bitcoin News Today: Bitcoin Rejected at $120,000, Market Cap Drops $100 Billion

Bitcoin's recent price action has been marked by a significant rejection at the $120,000 level, leading to a substantial decrease in the overall crypto market capitalization. The cryptocurrency's ascent to this price point was driven by institutional demand and ETF inflows, but the market saw an immediate pullback, with Bitcoin dropping to $118,400. This rejection resulted in a $100 billion reduction in the crypto market cap, influenced by profit-taking and technical resistance.

Institutional players have been a key driver of Bitcoin's price action, with substantial ETF inflows contributing to its rise. Analysts have suggested that if demand persists, there could be potential for further upside. However, the current market conditions must support sustainable growth for this to occur. The V-shaped pattern that Bitcoin has exhibited after reaching all-time highs is typically bearish, indicating that sellers are gaining control as profit-taking accelerates.

The impact of this rejection was felt across the broader crypto market, with correlated assets like Ethereum and other major Layer 1 and Layer 2 protocols experiencing similar pullbacks. The market's reaction was swift, with risk assets retrenching and community speculation rife on platforms like Twitter. The technical dynamics of Bitcoin's chart, including historical patterns and macroeconomic releases, play a crucial role in shaping investor sentiment and market movements.

The future trajectory of Bitcoin remains uncertain, with technical and regulatory factors likely to continue influencing market resilience. Persistent demand could pave the way for stability, but the ability of Bitcoin to sustain above $120,000 is still in question. Institutional interest remains pivotal amid volatile market conditions, and the interplay between support and resistance levels will be critical in determining Bitcoin's near-term direction.

Bitcoin is currently at a critical juncture, hovering near the $120,000 resistance level after multiple attempts to establish a sustained foothold above it. This price point has become a focal point for traders and investors, as the cryptocurrency's ability to break through this level could signal a significant shift in market sentiment. Recent market dynamics reveal a consolidation phase marked by heightened trading volumes and a bullish momentum shift, suggesting a potential breakout or significant retracement.

The recent breakout from a descending triangle pattern has injected fresh energy into the market, supported by increased volume and a series of higher lows. However, the repeated failure to hold above $120,000 signals that sellers remain vigilant, ready to capitalize on any weakness. The concentration of open interest around $117,000 and $122,000 creates a high-stakes environment where either a strong support or a sharp rejection could dictate Bitcoin’s near-term trajectory.

For market participants, the current price environment demands heightened vigilance and strategic positioning. Maintaining control above $117,000 is essential for bulls to avoid a significant sell-off, while breaking through $122,000 with conviction could unlock new upside targets between $130,000 and $135,000. This scenario would mark the first meaningful foothold above $120,000, potentially shifting market sentiment toward renewed optimism. Traders should monitor volume trends closely, as low volume breakouts often fail, leading to false signals and increased volatility.

The interplay between these critical levels creates a high-stakes battleground, where the next directional move could define Bitcoin’s trajectory for the coming weeks. The outcome hinges on whether bulls can sustain momentum above $117,000 and successfully breach the $122,000 resistance zone. This make-or-break moment will likely determine the near-term trend, with potential for either a strong breakout toward higher price targets or a retracement that tests lower support levels. Investors and traders should remain attentive to volume signals and liquidation risks as they navigate this volatile phase.

Bitcoin's recent retest at $119,000 and $120,000 led to a rejection, indicating that the resistance at these levels is strong. The cryptocurrency dipped below $120,000 after hitting an all-time high of $123,091, with analysts expecting potential end-of-month rallies amid profit-taking pressure. This volatility has led to a consolidation phase, where bears have thwarted the bulls' attempts to sustain the price above $120,000. The 8-hour Bitcoin chart shows that BTC is holding up well after a volatile drop from its all-time high of $123,200. The current retest represents bulls' third attempt to break above the long-standing resistance of $120,000. The value of Bitcoin crossed $120,000 due to positive sentiments around crypto rules in the United States. However, the influx of buy orders could form a collective force, violently pushing through the $121,000 mark once the GENIUS bill is signed and announced. The researcher Adam announced that about ₩8 trillion worth of Bitcoin and Ethereum options expired today. It was reported that Ethereum broke through its resistance level. Bitcoin price is once again heading toward the $120,000 mark, but the big question traders are asking is—what will it take for Bitcoin to reach $150,000?