Bitcoin Approaches $120K Resistance as On-Chain Metrics and Cooling Inflation Suggest Potential Breakout Opportunities

Key Points

1. Bitcoin is trading near $118,790, with key support levels at $112,000, $104,000, and $100,000, and a focus on breaking the $120,000 resistance.

2. Breaking the $120K resistance could trigger significant short liquidations and open the path for further price gains.

3. On-chain metrics, including a Stock-to-Flow ratio of 154 and an MVRV Z-Score of 2.667, indicate reduced supply pressure and room for price growth.

4. Cooling inflation and potential rate cuts may boost Bitcoin's chances of breaking above $120K.

5. Market sentiment and technical factors, such as the 50-day SMA near $113,324, support a bullish outlook for Bitcoin.