Bitcoin (BTC) has recovered above $120,000, but selling pressure remains strong. Price action suggests the market may be entering the early phase of a correction, potentially leading to a deeper decline before resuming its longer-term bullish trend.
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Selling Pressure Building
According to market analyst TehThomas, BTC is facing a rejection block near the $122,000 zone — a key confluence area for sellers.
Profit-taking is increasing among holders.
Buyer momentum is fading, reducing the ability to absorb new supply.
On the 4H timeframe, the rejection block aligns with a strong resistance cluster, signaling a possible short-term reversal.
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Fair Value Gap (FVG) in Focus
An unfilled Fair Value Gap remains around $112,000, making it a probable downside target if a pullback unfolds.
Historical patterns show BTC often revisits these gaps before continuing higher.
Recent liquidity sweeps above prior highs may have trapped late buyers, triggering stop-loss hunts and liquidations.
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Potential Downside Scenario
If bearish momentum accelerates:
First target: $112,000 (partial FVG fill)
Key support: $110,000 (full FVG fill)
Filling this gap could reset the market and provide a foundation for the next leg up toward new all-time highs.
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Key Levels to Watch
Resistance: $122,000 (rejection block)
FVG zone: $112,000
Major support: $110,000
Short-term bias: Corrective phase before potential bullish continuation
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📌 Bottom Line: While the long-term BTC outlook remains bullish, traders should prepare for a healthy correction. A drop to the $110K–$112K range could offer a strategic re-entry zone ahead of the next rally.
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