- Bitcoin fell below the critical $120,000 level in a fresh decline.
- The market is showing signs of low volume and a lack of upward momentum.
- Key on-chain data shows a lack of bidding support below the $120,000 mark.
The bull’s triumphant return proved to be a fleeting and fragile event.
Just as the market was celebrating a new era of price discovery, a wave of determined selling sent Bitcoin below the critical $120,000 level. The brutal rejection has once again put the bears in control, raising the grim prospect of an even more serious correction.
The decline, which saw major cryptocurrencies drop nearly 3% on the day, is a sign of waning momentum and evaporating support.
Recent highs now feel like a distant memory as the market cuts through the bidding liquidity that once held highs.
Preparing for further market penetration
The mood among experienced traders has shifted from cautious optimism to a grim acceptance of a new, more bearish reality.
The market is currently at a critical inflection point, with the very hard-won support now under sustained and powerful attack.
“The market still estimates bid liquidity at around 121,000 to 120,000, but what we have to look at next is absorption of sellers to rule out a significant drop,” popular trader Skew said in his latest market commentary on X.
His near-term outlook is grim, adding that the market is “very likely to be dominated by new short sales openings.”
This view is reinforced by data.
Trading Resources’ Material Indicator highlights that the market is currently facing “three consecutive daily support tests at the trendline,” a technical setup that suggests the bears are getting bolder with each attempt.
CoinGlass data paints an even more alarming picture, showing a clear lack of bidding support at levels well below $120,000, while a wall of sell orders is increasing overhead.
Return of the $108,000 Ghost
This short-term weakness comes against a backdrop of more worrying long-term conditions.
Veteran trader Roman warned X’s followers that despite recent record highs, Bitcoin’s situation remains volatile.
“A friendly reminder that HTF is once again showing bearish divergence, low volume and lack of momentum – both 1W and 1M,” he wrote, pointing out a series of typical warning signs that a rally is losing momentum.
His conclusion is chilling for bulls, saying the regional low of $108,000, which has been a major battleground in the past, could soon rise again.
The king of crypto may have briefly touched the heavens, but the bears are now doing everything in their power to drag it back to earth.
