Over the past few months, Bitcoin has come across one of its most important zones of resistance as price action has been repeatedly rejected around the $120,000 mark. Both the price chart and the BTC/USDT liquidation heat map show that this zone is not psychological, and when leveraged positions pop up, the current price range becomes a battlefield for both bulls and bears.
The clearing heatmap shows clusters with strong clearing leverage of approximately $120,000. This means that the cons are concentrated heavily just above the current price action. These shorts are probably set up with a tight stop, so breakouts can lead to shorter apertures, which will quickly push prices even higher. However, during that time, the cluster has acted as a resistance, encouraging market manufacturers to seek liquidity ahead of critical breakouts.
Bitcoin is trading for around $118,000 just under resistance after showing relatively stable price action over the past few days. The classic volatility squeeze behavior is still there and in the volume profile, which shows a decrease in activity. The RSI is just under the over-acquisition, suggesting that the market could surge if the trigger hits, but it warns of fatigue if the Bulls are unable to make a breakthrough soon.
At $116,000, there is a big liquidation zone on the downside. The price could be a liquidity grab target if it is rejected once again with $120,000 and drop. With the 50, 100 and 200-day lines widely separated upwards, and with a structural sound composition, Bitcoin is still trading above all of its major moving averages, which continues to be bullishly piled up.
Conclusion: This $120,000 threshold is the primary threshold for digital gold. If you break it with volume, the price will quickly approach more than $125,000. If this doesn’t work, it could be even lower, taking into account the lower liquidity at the lower price level, so it’s reloaded back to $116,000.
