Bitcoin Faces Downward Pressure After Failed $120K Breakthrough

Bitcoin's price fell below $117,500 during Tuesday's trading session, marking a 1.3% decline from its daily opening. The cryptocurrency had briefly touched $119,000 earlier in the day before encountering strong resistance, sparking concerns among traders about potential further declines.

Key Market Developments

【Market Data】BTC/USD showed weakening momentum following the Wall Street open, despite positive U.S. macroeconomic indicators. Analysts identified several critical factors influencing current price action:

• Failed attempt to reclaim $120,000 resistance level

• Increased selling activity by large holders ("whales")

• Short-term holder cost bases emerging as potential support zones

Technical Analysis Points to Potential Downside

Several prominent traders have warned of possible further declines if key support levels fail to hold. Material Indicators noted whale distribution patterns, suggesting: "If $116,750 doesn't hold, the $110k range may come into focus quickly."

——Technical analyst Roman projected a possible drop to $108,000, citing bearish divergence patterns and market expectations——

Underlying Market Strength Indicators

Despite the price drop, some analysts remain optimistic about Bitcoin's long-term prospects. CryptoQuant highlighted several positive signals:

• Absence of massive profit-taking typically seen at market tops

• Strong support levels at 【$115,700】 and 【$105,000】

• Improving U.S. economic data supporting risk assets

Trader Sentiment Divided

The market currently shows mixed signals, with:

• 43% of traders anticipating further declines

• 37% expecting consolidation

• 20% predicting a rebound

This divergence creates what analysts describe as a "cognitive conflict point" that could lead to increased volatility in coming sessions.

What Comes Next for Bitcoin?

Market participants are closely watching several key factors that could determine Bitcoin's near-term direction:

• Whale activity and exchange inflows/outflows

• Macroeconomic data releases

• Technical support/resistance levels

• Regulatory developments in major markets

As the situation develops, traders advise caution and recommend monitoring these indicators closely for signs of either continued weakness or potential reversal.