Bitcoin Faces Critical Test Near $120,000 Amid High Liquidation Risks and Potential Breakout

Key Points

1. Bitcoin's price action around $120,000 is a focal point, with bullish sentiment tempered by the risk of a sharp reversal.

2. Key support and resistance levels are identified at $117,000 and $122,000, each with over $100 million in open interest, indicating potential volatility triggers.

3. A breach below $117,000 could trigger long position liquidations, while a push above $122,000 could lead to a sustained rally.

4. Traders are advised to monitor volume and price action closely, as the next directional move could define Bitcoin's trajectory for weeks.

5. The market is in a consolidation phase, with significant open interest and liquidity zones influencing potential breakout or breakdown scenarios.