#BTC120kVs125kToday

Bitcoin needs help

Due to conflicting signals from Bitcoin's recent price action, the cryptocurrency king could be in trouble. Following a spectacular breakout above $120,000, Bitcoin reached as high as $125,000 before an enormous volume spike nearly instantly turned the tide.

The outcome was a steep decline back below $120,000, where it is currently trading at about $118,900. The dynamic can be seen clearly on the daily chart. Although the breakout appeared strong and clean, the vertical volume bar that accompanied the move indicates that large-scale selling into strength was responsible for a sizable portion of the activity.

Instead of new institutional purchases, this is frequently an indication that larger players are using the rally to take profits or sell positions. Bitcoin runs the risk of making a lower high if it stays pinned below $120,000, which could weaken the current bullish momentum and pave the way for more significant corrections.

But there is a crucial disclaimer. A dense cluster of leveraged long positions stacked between $112,000 and $118,000 is visible in exchange order books and on-chain data. These areas are probably going to provide solid support because liquidation cascades tend to draw aggressive buyers protecting their entries, even though they can force short-term wicks.

This indicates that although sentiment is a little shaky following the unsuccessful push to $125,000, Bitcoin is unlikely to crash through those support levels without a fight. Although the RSI is still high at 69, it is not yet in the extreme overbought range. Bulls will have an opportunity to reorganize as long as Bitcoin stabilizes and consolidates above $115,000-$118,000.