Bitcoin is trading near $118,790, testing the critical $120,000 resistance level that has become a focal point for market participants. Key support levels are established at $112,000, $104,000, and $100,000, providing technical buffers against potential pullbacks.
A decisive break above $120,000 could trigger substantial short liquidations, potentially accelerating upward momentum and paving the way for extended price gains. Market analysts highlight this threshold as a significant psychological and technical barrier whose breach may attract renewed institutional interest.
Supporting the bullish case, Bitcoin’s on-chain metrics show promising signals. The Stock-to-Flow ratio of 154 indicates constrained new supply, while an MVRV Z-Score of 2.667 suggests the asset remains undervalued relative to historical peaks, leaving room for further appreciation.
Macroeconomic tailwinds strengthen Bitcoin’s breakout potential. Cooling inflation trends and anticipated interest rate cuts are enhancing Bitcoin’s appeal as a hedge against currency devaluation, creating favorable conditions for overcoming the $120,000 resistance.
Technical indicators reinforce optimism, with the 50-day simple moving average providing robust support near $113,324. Combined with improving market sentiment, these factors collectively bolster the case for Bitcoin’s sustained upward trajectory.