Bitcoin: The Resistance At $120,000 Has Given Way, The Correction Is Being Confirmed

Has the euphoria lasted long enough for bitcoin? In recent weeks, records had been piling up like fireworks. $119,000 the day before yesterday, $123,000 yesterday morning… and then, the break. Bitcoin is now trading around $117,284, as if the market had blinked and rediscovered gravity. The apparent calm masked a turnaround that was already underway. Technical signals had predicted it, some analysts had sensed it coming. This time, the correction did not wait.

Bitcoin, a rapid rise, a sharp pullback: the perfect trap?

The bitcoin price reached $123,250 before retreating toward $117,200, leaving behind a trail of questions. This reversal intrigues. Because the signs of manipulation are increasingly visible. The Material Indicators account warns: “Don’t get caught! The buy wall at $120.5k appears designed to lure late buyers before a support test“. 

And what followed confirmed this warning. According to CoinGlass data, the next strong support starts at $118,800 , with a possible drop to $114,000–115,000 if the pullback intensifies.

Trader CrypNuevo drives the point home :

We must stay alert for manipulation. This move could be part of a weekly pump-and-dump pattern. Be careful.

What the indicators said: euphoria or calculated pause?

Technically, bitcoin’s price had remained in a bullish setup. But the signals are ambiguous. The RSI, one of the most popular indicators, stands at 75 on the 4h, a level often synonymous with overbought conditions. Conversely, the ADX remained low (12 on daily), indicating an immature trend.

Joao Wedson from CryptoQuant observes growing tension :

Historically, when this indicator turns green (positive spread), bitcoin enters a parabolic rally, often driven by leverage and FOMO on derivatives.

One had to be wary of false signals then. Stablecoin reserves on crypto exchanges are decreasing. This liquidity deficit could curb market enthusiasm without new inflows. QCP Capital remains cautious: “We prefer to stay selective and not chase the rally. Consolidation would be healthy.”

Crypto under pressure, Bitcoin in stress: the next moves will unfold in July

The situation remains open. On one side, bullish signals persist. On the other, doubts about an imminent consolidation are gaining ground.

• +10% for bitcoin in one week, despite the post-ATH correction;
• $432 million in short positions liquidated in 24 hours;
• $118,800: support identified by CoinGlass for a phase of technical pullback;
• 81% of Myriad users believe bitcoin will not fall below $100,000 in July;
• $2.407 trillion: bitcoin’s market capitalization, ranking it as the 5th largest global asset.

Among the anticipated catalysts is the publication of a key White House report on crypto strategy by July 22. And above all, a still fragile US macro context. The “ Big Beautiful Bill ” from the Trump administration could inflate the public deficit by $3.3 trillion. Historically, this kind of environment drives investors toward scarce assets… like bitcoin.

But danger looms. If the FED decides to tighten policy earlier than expected, risk appetite could collapse. Along with it, part of the crypto bubble. It’s not the rise to fear. It’s what comes right after.