Bitcoin currently trades near $119,765 as it approaches a decisive $120,000 resistance level, testing a multi-week descending trend line that has historically limited upward movements since mid-July. This technical threshold represents a pivotal moment for Bitcoin’s near-term price trajectory, with market participants closely watching for a potential breakout or rejection.
Technical indicators present conflicting signals: The Relative Strength Index (RSI) at 59 suggests mild bullish momentum without entering overbought territory, while the Average Directional Index (ADX) reading of 13 indicates a weakening overall trend. Simultaneously, the Squeeze Momentum Indicator flashes heightened volatility alerts, reflecting mounting market tension.
The 50-day Exponential Moving Average near $116,000 maintains a medium-term bullish foundation, providing underlying support. However, caution is warranted as declining trading volume accompanies the low ADX reading, signaling reduced conviction among traders during this critical price test.
Market sentiment reflects this uncertainty, with prediction markets currently assigning a 53% probability that Bitcoin will fail to sustainably hold above $120,000 by week’s end. This slight bearish bias underscores the market’s split expectations as the cryptocurrency challenges its most significant technical barrier in weeks.