Why is Bitcoin stuck at $120,000? Foreign media analyze 2 major reasons.
Bitcoin ($BTC) has significantly encountered resistance in its upward momentum since reaching the historical high of $123,100, currently consolidating around $119,227, while the altcoin market has also generally retreated after some rebounds this morning.
Analysis from external media in the cryptocurrency space (Cointelegraph) identifies the reasons why Bitcoin is stuck around $120,000 as follows:
Binance's net taker volume for Bitcoin turns negative, retail selling pressure intensifies
Data from blockchain analysis platform CryptoQuant shows that the net taker volume for Bitcoin on Binance has turned negative again, dropping below -$60 million.
This indicator reflects that the takers executing trades are primarily selling, with the negative value highlighting the increasingly bearish sentiment among retail investors.
(Cointelegraph) points out that the current stagnation in Bitcoin's price trend is mainly influenced by retail selling pressure, especially noticeable on Binance.
Source: Cointelegraph Binance exchange's net taker volume for Bitcoin turns negative, retail selling pressure intensifies
The premium indices for US and Korean exchanges are weak, with short-term spot demand lacking.
(Cointelegraph) points out that the premium index for the US-listed exchange Coinbase remained stable for most of July, indicating a cautious attitude from US spot buyers.
The Korean premium index has dropped into negative territory, indicating that Bitcoin is trading at a discount on Korean exchanges, further reflecting ongoing selling pressure and weak spot demand.
Further reading:
Bitcoin consolidates, Ethereum breaks through $3,800! Analysts reveal key indicators forecast: something big is coming.
Source: Cointelegraph The premium indices for US and Korean exchanges are weak, with short-term spot demand lacking.
Bitcoin bulls hold firm, with $115,000 as key support.
Although Bitcoin has entered a consolidation trend in the short term, it is good news that it can maintain the range of $110,000 to $115,000.
Cryptocurrency analyst Boris Vest pointed out that in this ongoing liquidity tug-of-war, sellers are absorbed by buyers around $116,000, while buyers face selling pressure around $120,000, indicating a healthy bilateral market structure.
According to data from Binance, the recent increase in accumulated trading volume (CVD) of $4.1 billion was quickly digested, and then, as buyers entered the market, the trading volume surged to $2.3 billion, showing that demand at lower price levels remains strong.
As long as Bitcoin continues to hold the mid-range area of $115,000, bulls still maintain structural control; if selling liquidity decreases, there remains upward potential.
Source: Cointelegraph Bitcoin bulls hold firm, with $115,000 as key support.
Analysts are optimistic about the future market, predicting it could reach $139,000.
From a technical perspective, although there is still a possibility of breaking through $120,000 in the future market, a retest of the daily fair value gap (FVG) between $115,200 and $112,000 followed by a rebound could provide the necessary liquidity for the next wave of upward movement.
Such a trend may trigger large-scale liquidations and lay the groundwork for breaking through the historical high of $123,100.
Bitcoin researcher Axel Adler Jr. also stated that Bitcoin is still in an upward trend, as market participants continue to support buying activities, and it has not yet entered a market overheating phase, indicating further upward space, with a target of $139,000.
Source: AxelAdlerJr Analysts are optimistic about the future market, predicting Bitcoin could reach $139,000.
This content is generated by Crypto Agent compiling information from various sources, reviewed and edited by (Crypto City); it is still in the training phase and may contain logical biases or information errors. The content is for reference only and should not be considered investment advice.
'Why is Bitcoin stuck at $120,000? Foreign media analyze 2 key reasons: Is there still hope for a surge to $140,000?' This article was first published by 'Crypto City'.
