Bitcoin Stalls After Failed Breakout Above Key $120K Supply Zone Resistance

Bitcoin failed to hold gains above the $120K–$121K supply zone, retreating to trade within the Monday range after liquidity sweeps.

Price action shows strong selling pressure near $122,446, with short-term bias remaining neutral to bearish below the key resistance zone.

Analysts identify $114,700 as the first support target if price rejects $120K again, with potential retests of the $121K fair value gap.

Bitcoin trades in a tight range having failed to hold a breakout above a large supply zone, and the short-term sentiment is neutral to bearish.

Price Action Stalls Below $120K Resistance

According to market analyst Crypto_Scient, Bitcoin attempted to move past the key supply zone marked between $120,000 and $121,000 but faced a sharp rejection. The move briefly pushed the price to around $122,446 before sellers regained control. This rejection reinforced the area as a strong sell zone where buyers are unable to maintain momentum.

Price has since returned inside Monday’s range, which is defined by a high at $122,446 and a low at $118,063. The analyst noted that Bitcoin swept both the high and the low in quick succession, indicating liquidity grabs on both sides. Such movements often precede a larger directional trend but currently point to consolidation.

Market bias is neutral to bearish until the the zone of 120,000-121,000 area is flipped into support. The failure to sustain above this mark has remained a limiting factor to upside momentum in the short-run.

Key Levels and Scenarios to Monitor

Crypto_Scient outlined two possible short-term paths for Bitcoin. In the bullish case, if the Monday low holds on the one-hour chart and price reclaims the $120,000 zone, a move back toward $122,446 could follow. This would require a sustained close above the red supply zone to target higher levels.

In the bearish case, continued rejection from the $120,000–$121,000 range could trigger a move lower. The analyst identified $114,700 as the first level of interest should a deeper pullback occur. This area is expected to attract buying interest if tested.

On the recent decline, Bitcoin also left a fair value gap near $121,000. Price often revisits such gaps, suggesting that even in a choppy downtrend, a retest of this area remains possible. However, without a confirmed break above resistance, downward pressure is expected to persist.

Bitcoin’s current structure shows indecision, with sellers defending the upper range and buyers attempting to hold the lower boundary. A decisive move out of Monday’s range will likely determine the next major direction.

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