Bitcoin Could Remain Range-Bound Near $120,000 as Bulls Defend Key Support Levels

• Bitcoin’s price action is signaling a potential consolidation phase as it struggles to break above key resistance levels near $120,000.

• Despite recent selling pressure, sustained inflows into BTC exchange-traded funds indicate continued investor confidence in the cryptocurrency’s long-term prospects.

• According to COINOTAG, technical indicators suggest BTC may trade sideways between $115,000 and $123,218 before a decisive breakout occurs.

Bitcoin faces resistance near $120,000, with ETFs showing strong inflows; BTC may consolidate between $115K-$123K before the next major move.

Bitcoin Price Faces Resistance at $120,000 Amid ETF Inflows

Bitcoin’s recent attempts to surpass the $120,000 resistance level have been met with selling pressure, as reflected by the long wick on the daily candlestick chart. This resistance zone has proven challenging, suggesting a phase of price consolidation may be underway. However, the sustained inflows into US-based BTC exchange-traded funds, totaling over $799 million in a single day and exceeding $5.2 billion since early July, underscore robust institutional demand. This dynamic highlights a market balancing act between profit-taking at key levels and underlying bullish sentiment.

Technical Indicators Point to Range-Bound Trading

Analysis of the 4-hour BTC/USDT chart reveals a flattening 20-day exponential moving average (EMA) and a relative strength index (RSI) hovering just above the midpoint, both classic signs of range-bound market behavior. The current price action suggests Bitcoin may oscillate between the support level near $115,000 and resistance around $123,218 in the short term. Traders should monitor these boundaries closely, as a decisive break could signal the next directional move.

Support Levels Critical for Maintaining Bullish Momentum

On the downside, the $110,530 support level is pivotal. A breach below this point could shift market control to the bears, potentially leading to a deeper correction toward $105,000. Conversely, a rebound off the 20-day EMA near $113,528 would reinforce bullish momentum and set the stage for renewed attempts to break above resistance. Maintaining this support is essential for bulls aiming to resume the uptrend toward $135,729 and beyond.

Investor Sentiment and Market Outlook

Investor sentiment remains cautiously optimistic, bolstered by continuous ETF inflows and the absence of significant sell-offs. Market participants appear to be positioning for a potential breakout while respecting the current consolidation range. As COINOTAG notes, this period of sideways trading may serve as a healthy pause, allowing Bitcoin to build strength for future gains. Close attention to volume and volatility metrics will be crucial for anticipating the next major price movement.

Conclusion

Bitcoin is currently navigating a critical juncture, balancing between strong resistance near $120,000 and vital support around $110,530. The ongoing ETF inflows reflect sustained institutional interest, providing a foundation for potential upward momentum. However, technical indicators suggest a period of consolidation is likely before a clear trend emerges. Traders and investors should monitor key levels closely and prepare for increased volatility as Bitcoin seeks direction in the coming weeks.