- Bitcoin has fallen below the key $120,000 level amid a fresh wave of selling.
- Markets show signs of low volume and a lack of upward momentum.
- On-chain data indicate that bid-side support is not present below the $120,000 threshold.
The bulls’ victorious comeback has proven fleeting and fragile.
Just as traders began celebrating a new era of price discovery, a determined wave of selling has pushed Bitcoin back below the critical $120,000 mark — a brutal rejection that hands control back to the bears and raises the risk of a much deeper correction.
The sell-off, which shaved nearly 3% off the leading cryptocurrency during the day, is a story of waning momentum and evaporating support.
Recent all-time highs feel distant as markets cut through the bid liquidity that once held prices aloft.
Markets brace for a deeper cut
Sentiment among experienced traders has shifted from cautious optimism to grim acceptance of a new, lower reality.
Markets now sit at a critical inflection point, and the hard-won support is under sustained, aggressive attack.
“The market still prints bid liquidity around 121K–120K, but next we need to see seller absorption to rule out a sweep lower,” popular trader Skew wrote in a recent market update on X.
His short-term outlook was stark; he added that markets are “quite likely to be dominated by new short openings.”
The data back up that view.
Trading resource Material Indicators highlighted that the market is facing a “third consecutive daily support test at the trendline,” a technical setup suggesting bears grow bolder with each attempt.
CoinGlass paints an even more concerning picture, showing a clear lack of bid support well below $120,000 while a wall of sell orders has multiplied above prevailing prices.
The specter of $108,000 returns
This short-term weakness comes against a troubling longer-term backdrop.
Veteran trader Roman warned followers on X that Bitcoin’s condition remains fragile despite recent highs.
“Friendly reminder we’re once again printing more lower highs/lower lows, low volume and lack of momentum on HTF. Both 1W and 1M,” he wrote, pointing to classic warning signs that a rally may be running out of steam.
His conclusion is chilling for bulls: a local trough around $108,000 — a level that has been a key battleground in the past — could soon re-enter play.
The crypto king may have briefly touched the heavens, but the bears are now doing everything they can to drag it back down to earth.