According to analysts, Bitcoin (BTC) faces heavy resistance near the $120K level. Failure to break above this level would send the BTC back below the $100K during Q3 and Q4.
The $120K is a strong dynamic resistance that's been active since 2021. It's also worth noting that it's a part of a bullish trendline, and we have already seen 2 rejections at this trendline.
If Bitcoin (BTC) manages to clear the $120,000 hurdle, it will send the cryptocurrency to new ATHs. This would also start a new bullish era in the entire crypto and altcoin markets.
The dynamic resistance is part of a larger trendline that's been around for 4 years now. It was first established when BTC made a new high in the last bull market.
The 2nd interaction with the trendline happened in 2024 when BTC once again tried to break out. However, the attempt failed, and now BTC is back below the trendline.
Now, Bitcoin (BTC) is back again and is now inches away from this major line. Also, the momentum remains strong as we approach this multi year trendline. This is a sign that it remains a high stakes breakout where anything can happen.
Experts believe that a break of $120K is important to signal a major shift in the market behaviour. It will also lead the market players towards price discovery.
But what happens if Bitcoin (BTC) fails to clear $120K? In that case, analysts believe that the next stop for Bitcoin (BTC) will be near the $73,000 and $70,000 handles.
If we compare the current price with the bearish target of $73,000, that's a lot of loss for everyone. A drop of this magnitude would be very dangerous for future traders who are in a long position.
Overall, Bitcoin (BTC) has now approached a very important level that would define the price for the next 5 to 6 months.