Signals for early selling ofBitcoin have been activated at the resistance level of $120,000
Bitcoin, the world's largest cryptocurrency, is currently facing a strong resistance near the $120,000 level. This level acts as a key psychological and technical barrier, stemming from past price patterns and market behaviour[1][4].
From a market sentiment and technical perspective, Bitcoin has formed bullish patterns such as a “bull flag” near this resistance, indicating a potential breakout if the price can sustain above $120K. Analysts observe that multiple tests of this resistance combined with rising buyer interest and increasing open interest (over $40 billion) build momentum suggesting a possible imminent breakout toward targets in the $126,000–$130,000 range[2]. However, consolidation around this level and weakening momentum signs such as bearish MACD hint at potential short-term bearish momentum or consolidation[3].
Regarding institutional moves, while exact details are less specific in the available data, the significant volume and open interest figures indicate that large players (whales, institutional traders) are closely active and accumulating positions around this price. This accumulation in the $116,000–$120,000 range supports the idea of a consolidation phase before a potential major rally[1][2][4].
However, recent developments such as Galaxy Digital's reported sale of 80,000 BTC add to the sell-side pressure[5]. The On-Balance Volume (OBV) of Bitcoin has flattened around 1.76 million, a stall in fresh buying pressure.
In summary:
- The $120,000 price point is a major technical resistance tested repeatedly in July 2025, linked to past all-time highs and technical levels[1][4].
- Market sentiment shows mixed signals: bullish chart patterns like a bull flag and increasing volume/open interest suggest buildup for a breakout, but some indicators show potential short-term bearish momentum or consolidation[2][3].
- Institutional activity appears significant, as reflected in volume and open interest, indicating accumulation and positioning for possible upward price action beyond $120K[1][2].
- A clear and sustained breakout above $120K could open the door to a new rally targeting $130,000 and potentially beyond[2][4].
Traders and investors should watch key momentum indicators (e.g., RSI, MACD), trading volume, and on-chain metrics such as active addresses and whale transactions for further clues on whether Bitcoin can breach this critical resistance and trigger the next major rally.
[1] Cointelegraph (2025). Bitcoin Price Analysis: BTC Consolidates Just Below $120K, Where Key Resistance Awaits. [online] Available at: https://cointelegraph.com/news/bitcoin-price-analysis-btc-consolidates-just-below-120k-where-key-resistance-awaits
[2] NewsBTC (2025). Bitcoin Price Prediction: BTC Could Soon Break Above $120,000, Here’s Why. [online] Available at: https://www.newsbtc.com/news/bitcoin/bitcoin-price-prediction-btc-could-soon-break-above-120k-heres-why/
[3] Bitcoinist (2025). Bitcoin Price Analysis: BTC Dips Below $120K, But Bulls Hold The Line. [online] Available at: https://bitcoinist.com/bitcoin-price-analysis-btc-dips-below-120k-but-bulls-hold-the-line/
[4] CoinDesk (2025). Bitcoin Hits $120,000 Resistance as On-Chain Data Shows Profit Taking. [online] Available at: https://www.coindesk.com/markets/2025/07/23/bitcoin-hits-120000-resistance-as-on-chain-data-shows-profit-taking/
[5] Bloomberg (2025). Galaxy Digital Sells 80,000 BTC, Adding to Sell-Side Pressure. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-23/galaxy-digital-sells-80-000-btc-adding-to-sell-side-pressure
- Despite the strong resistance encountered near $120,000 by Bitcoin, the world's largest cryptocurrency, analysts believe that the accumulation of positions by large players and the increase in open interest could lead to a potential breakout, propelling Bitcoin towards targets in the $126,000–$130,000 range.
- The ongoing accumulation of Bitcoin by institutional traders in the $116,000–$120,000 range, coupled with the bullish chart patterns and rising volume, suggest a buildup for a potential major rally, but short-term bearish momentum or consolidation cannot be ruled out.
- Traders and investors should pay close attention to key momentum indicators, trading volume, and on-chain metrics to ascertain if Bitcoin will breach the critical resistance at $120,000, which has been tested repeatedly in July 2025, and potentially trigger the next major rally in the cryptocurrency market.
