Bitcoin Edges Toward $120K as Traders Brace for High-Volatility Week

Bitcoin Edges Toward $120K as Traders Brace for High-Volatility Week

Short-Term Resistance and Liquidation Zones Shape BTC Outlook

Bitcoin surged to $119,000 on Sunday evening, extending its rebound from a two-week low of $114,500 and signaling renewed volatility just ahead of the weekly close. The movement comes as analysts warn of “larger price swings” and dense liquidation clusters just below the psychological $120,000 level.

Key Price Levels Take Center Stage

With Bitcoin now attempting a daily close above its 10-day simple moving average, momentum appears to be shifting back into bullish territory.

According to crypto investor Ted Pillows, the immediate resistance is at $119,500:

“$BTC needs to break above $119.5K for a big move. If that doesn’t happen, this consolidation will continue.”

Pillows believes a breakout is likely next month and could initiate a new upward leg.

Renowned analyst Rekt Capital echoed that sentiment, identifying a breakout above the blue range low as a key reclaim.

“Any dips into the range low (confluent with the new higher low) would be a retest attempt to confirm the reclaim.”

Downside Risk Still on the Table

Not all analysts are convinced the bulls have full control. Trader CrypNuevo warned of a potential retracement to the $113.6K–$114.5K range, where a major liquidation cluster resides.

“If we zoom out, we can see that the main liquidation level is at $113.8K.”

Data from CoinGlass supports this, showing $119,650 as the ‘max pain’ point for BTC shorts, while a surge to near all-time highs at $123,000 could trigger over $1.1 billion in liquidations.

Analysts Warn of Increased Volatility

Crypto analytics firm Coinank reported “strong resistance forming around 119,000–120,000” due to tightly packed liquidation zones. Analyst TheKingfisher provided further caution:

“Dealers are heavily short gamma… Expect potentially larger price swings in the near term.”

Global Factors Also in Play

This rebound coincided with macro developments — the U.S. and China agreed to delay new tariffs, offering breathing room to global markets and potentially bolstering risk-on sentiment in crypto assets like Bitcoin.