Bitcoin News Today: Bitcoin Trapped Below $120K as Bulls and Bears Face Key Support and Resistance Levels

Bitcoin has been trading in a sideways pattern below the $120,000 level as market participants await a decisive move in either direction. The price has seen a pullback from recent highs above $122,000, with key support now holding around $118,000. The 100-hour Simple Moving Average continues to act as a buffer, while a bullish trend line forms with support at $118,600 on the hourly chart of the BTC/USD pair [1].

The correction has seen Bitcoin dip below critical resistance levels, including the $120,500 and $121,200 zones. It now faces a key test at the $120,250 level, which, if cleared, could open the door to further gains. A close above $120,850 could reinforce bullish momentum and bring the $122,250 and eventually the $124,000 levels into focus. Analysts have noted that a sustained move above $120,000 could signal a broader breakout toward the all-time high of $123,000 [1].

Conversely, failure to regain control above $120,500 could result in renewed bearish pressure. Immediate support is at $118,600, followed by $117,800. A breakdown below $116,550 could trigger a sharper decline toward $115,500 and ultimately the $113,500 support level. Technical indicators suggest mixed momentum, with the RSI for BTC/USD currently below the 50 level and the MACD losing bullish strength [1].

Market sentiment remains cautiously optimistic, supported by reduced selling pressure from long-term holders and the price holding above $116,817 [5]. Institutional interest appears to be growing, with over 20 publicly traded firms increasing their Bitcoin holdings in recent days [9]. On-chain activity and the number of new Bitcoin addresses also suggest rising retail and institutional participation.

The broader market environment has turned more risk-on, with the total crypto market cap rising and the Crypto Fear and Greed Index at 70, signaling a shift toward greed-driven buying [9]. However, the Bitcoin Macro Index recently issued a bearish signal, prompting speculation about a potential return to $110,000 if the price struggles to stabilize [3].

Some analysts remain bullish, citing historical post-halving patterns that suggest a summer rally followed by consolidation in September and a final push in the fourth quarter [9]. While past performance does not guarantee future results, such patterns indicate that a near-term rally remains plausible if buying pressure continues. Meanwhile, bearish traders are monitoring for signs of weakness, particularly below $119,000, which could lead to a deeper correction [1].

As macroeconomic data, including the US CPI report, approaches, investors are advised to remain alert. The coming weeks could determine whether Bitcoin regains upward momentum or faces renewed downward pressure.

Source: [1] Bitcoin Price Trades Sideways Under $120K—Will Bulls Regain Control? (https://www.newsbtc.com/analysis/btc/bitcoin-price-trades-sideways-120k/)

[3] SPX correction + Bitcoin liquidity traps = Black Swan loading. (https://www.facebook.com/groups/cryptogb/posts/2416185****768295/)

[9] Bitcoin Breaks $120K as Saylor Suggests He Found ' ... (https://www.cointribune.com/en/bitcoin-breaks-120k-as-saylor-suggests-he-found-something-better-than-gold/)