Bitcoin Price Faces Resistance at $124,000: Will $121K Hold?

Bitcoin Price Struggles at $124K While Testing $121K Support

Bitcoin price trades near $123,000 after facing rejection at $124,000, reflecting mild market cooling. Bulls attempt recovery as momentum eases, while investors watch whether the $121,000 support will hold. Broader crypto markets show consolidation, with traders cautious amid reduced volatility and shifting sentiment following recent highs in digital asset trading activity.

Bitcoin Price Faces Resistance Amid Market Uncertainty

The price has tried to shoot up again above the price of $124,000 and was rejected once again. As observed by analysts, the cryptocurrency was not able to sustain the momentum beyond this resistance zone, and this was a pointer of potential weakness in the short-term.

The short-term resistance is around $121,000, which is a position that is thought to be revisited in the near future by market observers. In case BTC manages to protect this zone, it is likely that it will then recover to past highs, becoming a bullish market again.

Nevertheless, once the level at $121,000 is breached, traders caution of a steeper decrease that might push the prices to the lower level of $117,000. This correction would signify a higher pressure to sell and can prolong the present period of consolidation.

Technical charts show that there is a very high resistance around the levels of $123,000 and $124,500, where the recent price movements have been halted quite a number of times. A breakout higher than this might be a kick start to an upwards trend again, but a long-term position below the range of $121,000 might indicate a stronger pull back.

Bitcoin Faces Major Liquidity Shift Amid BlackRock ETF Activity

The cryptocurrency market is witnessing heightened volatility as large BTC movements emerge from institutional players.

As per new statistics by CoinGlass, there are now liquidity clusters around the $120,000 price point. In their recent 48-hour BTC liquidation heatmap, there is high leveraged positioning around that area. Analysts state that this tight liquidity can cause high price responses in case Bitcoin changes dramatically to the right or left.

Simultaneously, on-chain tracking records indicate that there are huge Bitcoin transfers associated to the BlackRock iShares Bitcoin ETF (IBIT). All transactions were estimated to have 300 BTC, which were worth about $36.8 million. The ETF had several wallet addresses where similar transfers were carried out over a period of time.

Will BTC Price Revisit Its Previous Highs?

The BTC price hovered at $123,092, showing slight upward momentum after recent consolidation. The price is now holding between the major resistance of $125,000 and the firm support of around $120,000, showing a period of apprehensive optimism amongst traders.

The MACD indicator shows narrowing red bars, which means that the bearish momentum might be softening. The MACD line is fast nearing the signal line, and this may show that there is a probability of a short-run bullish crossover in case of increased volume.

In the meantime, the RSI is around 54, just above the neutral 50 area. This indicates not an overwhelming buying interest, but lacks apparent overbought.

Source: BTC/USD 4-hour chart: Tradingview

In case the Bitcoin price continues to move above $123,000, it may retest the resistance that happens at $125,000. Nevertheless, a decline below $120,000 could also lead to new selling pressure, and likely the price could fall into the subsequent support area that would be around $117,000.