Bitcoin has fallen below the crucial $120,000 threshold amidst a fresh wave of selling, raising concerns among traders about potential deeper corrections ahead. The market now faces low trading volumes and a lack of bullish momentum, signalling a worrying trend for the cryptocurrency.
Market Faces Potential Deeper Correction
The sentiment among seasoned traders has shifted from cautious optimism to bleak acceptance of a bearish reality. The market is at a critical inflection point, with previously secured support now under significant pressure.
Popular trader Skew commented, “The market is still citing offer liquidity around $121K-$120K, but what we need to see next is the absorption of sellers to avoid a downward sweep.” His short-term outlook remains grim, suggesting that new short positions are likely dominating the landscape.
This pessimistic view is further supported by trading data. Analysts at Material Indicators pointed out that the market is facing its “third consecutive daily support test on the trendline,” a technical setup indicating that bearish momentum is increasing with each attempt.
Data from CoinGlass paints an even more concerning picture, revealing a stark lack of offer support well below the $120,000 mark, alongside a surge in selling orders.
The Return of the $108,000 Phantom
This short-term weakness occurs against the backdrop of a more troubling long-term outlook. Veteran trader Roman warned his followers on X that Bitcoin’s situation remains precarious despite its recent peaks.
“Just a friendly reminder that we are once again printing more bearish divergences, low volume, and a lack of momentum on higher timeframes, both weekly and monthly,” he noted, highlighting classic warning signs that the rally may be losing steam.
His conclusion sends chills down the spines of bulls: the local low at $108,000, a key battleground in the past, could soon come back into play.
While Bitcoin may have briefly touched new heights, bearish forces are now attempting to bring it back to earth.
John is a seasoned journalist at The Bothside News, specializing in balanced reporting across news, sports, business, and lifestyle. He believes in presenting multiple perspectives to help readers form informed opinions. His work embodies the publication’s philosophy that truth emerges from examining all sides of every story.
