Bitcoin rallied past $119,000 late Sunday, staging a sharp recovery from recent lows and reigniting discussions about the next big move.
As traders prepare for the weekly close, eyes are now locked on the $120K level, a zone dense with potential liquidations and technical resistance.
After dipping as low as $114,500 earlier in the week (its lowest point in two weeks), BTC has managed to reclaim key moving averages, with analysts highlighting a possible breakout if momentum continues.
“Bitcoin needs to clear $119.5K to shift out of consolidation,” noted crypto investor Ted Pillows on X. He believes a successful push could set the stage for a larger rally in August.
Other analysts echoed this sentiment, emphasizing the importance of recent price action. Rekt Capital pointed out that Bitcoin has reclaimed its previous range low, describing any near-term dips as possible “retest attempts” of the newly regained support.
Despite the optimism, some caution remains. Market watcher CrypNuevo identified a high-risk zone around $114,000, noting that the market could still revisit this level to fill the downside wick left during last week’s dip. This zone, they explained, aligns with a significant cluster of liquidation levels, a magnet for short-term volatility.
Data from CoinGlass confirms this pressure, showing the “max pain” level for BTC shorts around $119,650. If Bitcoin were to challenge its all-time high near $123,000, short liquidations could exceed $1.1 billion.
Adding to the cautionary outlook, analytics platform Coinank flagged a growing concentration of liquidations between $119,000 and $120,000, suggesting stiff resistance in that range.
Meanwhile, derivatives analyst TheKingfisher warned that market makers appear heavily short gamma, a technical setup that may result in exaggerated price movements.
“Expect sharper price swings in the near term,” he said on X, advising traders to keep a close watch on sudden volatility.
As the new week begins, Bitcoin’s positioning near a critical threshold has sparked both hope and hesitation. The coming days may determine whether the crypto market is gearing up for another breakout or bracing for a reversal.
