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What is the resistance zone that everyone is watching?
Eyes are on the range between $119,000 and $120,000, where liquidation orders are concentrated and the so-called max pain for short positions flows. According to analysts from CoinGlass, the max pain – that is, the price at which most short traders incur the greatest losses – is around $119,650. In this range, the pressure from sellers and buyers risks generating strong price fluctuations.
Ted Pillows, well-known trader and entrepreneur, stated that the true “breakout” could only occur with a decisive close above $119,500. Otherwise, the chart suggests a possible prolonged consolidation phase, without any immediate new highs.
What happens if Bitcoin surpasses 120 thousand dollars?
If Bitcoin manages to convincingly break the resistance of $120,000, the “bullish” scenario would become predominant. A prospect that attracts the attention of “speculators” and the community: short liquidations could exceed 1.1 billion dollars if the price pushes close to the all-time highs of $123,000. This phenomenon, typical of phases of high volatility, often catalyzes further growth and creates violent “squeezes” to the detriment of those who had bet on a price drop.
Among analysts, a forecast is circulating: we might see an attempt at a definitive breakout as early as next month, also thanks to the more relaxed climate in the international markets.
Why do we talk about “extreme” swings and volatility?
The perhaps most relevant data for those who follow Bitcoin in the very short term concerns volatility: several experts have noted the predominant presence of operators known as “dealer short gamma.” Essentially, these market players tend to cover their positions by selling at each new rise and buying when the price falls, amplifying the swings especially during sudden movements.
The result is that on shorter time frames the price of Bitcoin could remain subject to unpredictable fluctuations – a perfect context for those engaged in intraday trading, but risky for those focusing on holding strategies.
What do the technical indicators say about the next movement of Bitcoin?
Technical analysts emphasize the resilience of the 10-day simple moving average, a level that has recently acted as crucial support. On Sunday, Bitcoin attempted a daily close right above this average, a sign of strength from the buyers. Additionally, the dynamic observed on tools like TradingView indicates that confirmation of a weekly close above $119,500 could completely change the market’s psychological setup.
However, the presence of many liquidation zones remains crucial. These areas are often the scene of battles between buyers and sellers and can generate false breakouts or rapid returns to lower levels.
What prospects in the current geopolitical context?
The Trump Effect did not take long to manifest in this movement: the postponement of the USA-China tariffs, decided in these hours, contributes to strengthening the favorable sentiment towards assets uncorrelated with traditional monetary policies. For global investors, Bitcoin is thus confirmed as both a “safe haven” and a potential speculative asset.
The immediate future depends both on international policy decisions and on technical movements in the upcoming sessions. Social media, like Twitter and Telegram, are already buzzing with predictions that see the target of $120,000 as a decisive threshold between a simple “recovery” and the start of a true new bull run.
In summary: what to expect for Bitcoin in the coming weeks?
The decisive attack on the $120,000 mark represents a key moment for Bitcoin’s narrative in 2024. If the breakout is confirmed by significant volumes and a weekly close above $119,500, the market could experience an additional wave of short liquidations and a chase towards the all-time highs of $123,000. However, there are still risks of false signals, given the context of acute volatility and the high level of attention on the liquidation zones.
Everything can change in the coming weeks: those who follow Bitcoin should monitor technical signals, geopolitical news, and community reactions. To stay updated on real-time developments, follow the main social channels and market trackers: the future of the most discussed asset in the world is still to be written.
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