- Bitcoin fell below the key $120,000 level amid a fresh wave of selling.
- The market shows signs of low volume and a lack of upward momentum.
- Key on-chain data indicates a shortage of buy-side support below the $120,000 threshold.
The bulls’ triumphant comeback has proven fleeting and fragile.
Just as the market began to celebrate a new era of price discovery, a determined selling wave pushed Bitcoin back below the critical $120,000 level — a brutal rejection that has bears back in control and raises the specter of a much deeper correction.
The sell-off, which knocked the flagship crypto down by nearly 3% on the day, reflects a loss of momentum and evaporating support.
Recent all-time highs now feel like a distant memory as the market slices through the buy-side liquidity that once propped it up.
A market bracing for a deeper pullback
Sentiment among seasoned traders has shifted from cautious optimism to the sober acceptance of a more bearish reality.
The market sits at a critical inflection point, with hard-won support coming under sustained and aggressive pressure.
“The market still prices buy-side liquidity around 121K–120K, but what we need to see next is seller absorption to rule out a breakdown,” wrote popular trader Skew in his latest market note on X.
His short-term outlook was blunt: the market is “quite likely to be dominated by the opening of new short positions.”
That view is supported by the data.
Trading resource Material Indicators highlighted that the market now faces the “third consecutive daily support test at the trend line,” a technical configuration suggesting bears are growing bolder with each attempt.
Data from CoinGlass paints an even more worrying picture, showing a clear lack of buy-side support far below the $120,000 mark, while a wall of sell orders has built up above key levels.
The return of the $108,000 specter
This short-term weakness unfolds against a more concerning long-term backdrop.
Veteran trader Roman warned his followers on X that Bitcoin’s situation remains fragile despite its recent highs.
“A friendly reminder that we’re printing more bearish divergences again, low volume and lack of momentum on HTF. Both 1W and 1M,” he wrote, pointing to a series of classic warning signs that the rally may be running out of steam.
His conclusion is chilling for bulls: local lows around $108,000 — a level that has been a key battleground in the past — could soon come back into play.
The king of crypto may have briefly touched the sky, but the bears are now doing everything they can to drag it back down to earth.