Bitcoin May Face Support Retest Below $119,000 Amid Liquidity and Manipulation Concerns

• Bitcoin’s recent surge near $123,000 faces a critical support retest, signaling potential volatility ahead for investors.

• Order-book liquidity data reveals strategic bid placements that may precede a price correction, highlighting market manipulation risks.

• According to COINOTAG sources, seasoned traders caution against late entry, warning of a possible “pump and dump” scenario targeting late buyers.

Bitcoin nears key support retest below $119K amid liquidity shifts and trader warnings, signaling cautious optimism for crypto investors.

Bitcoin Faces Support Retest as Order-Book Liquidity Signals Potential Pullback

Bitcoin (BTC) recently approached a significant resistance level near $123,000, marking a notable rally in 2025. However, market data from leading exchanges indicates that BTC is poised for a support retest, potentially dipping below $119,000. This movement is primarily driven by shifts in order-book liquidity, where large buy walls appear strategically placed to attract late buyers before a correction.

Such liquidity patterns suggest that institutional players may be orchestrating price movements to consolidate gains and shake out weaker hands. The presence of substantial bid support around $120,500, as highlighted by trading analytics firms, underscores the likelihood of a short-term retracement before any sustainable upward momentum resumes.

Market Manipulation Concerns and Trader Sentiment

Recent analysis from COINOTAG sources and market observers points to a growing concern over potential market manipulation tactics, including “pump and dump” schemes. These tactics involve artificially inflating prices to entice late entrants, only to trigger rapid sell-offs that leave those buyers at a loss.

Material Indicators, a respected trading resource, cautioned traders on social media platforms to remain vigilant, emphasizing that the current buy walls might be a lure rather than genuine support. This sentiment is echoed by popular traders who advise caution amid the high volume of short liquidations, which reached over $430 million within 24 hours, signaling heightened volatility.

Professional Traders Adopt a Selective Approach Amid Volatility

Despite the cautionary signals, professional trading firms like QCP Capital maintain a structurally bullish outlook on Bitcoin, supported by ongoing institutional inflows and favorable macroeconomic conditions. However, these firms advocate for a selective trading strategy, avoiding aggressive long positions at current price levels.

QCP Capital highlights that traders are increasingly utilizing perpetual futures contracts over options to manage directional exposure, reflecting a maturing market dynamic. This approach allows market participants to hedge against short-term volatility while maintaining confidence in Bitcoin’s long-term growth potential.

Institutional Interest and Market Maturation

Institutional adoption continues to underpin Bitcoin’s price resilience, with inflows from ETFs, sovereign funds, and retail investors contributing to sustained demand. Industry figures like Anthony Pompliano have described Bitcoin as the “Greatest Show on Wall Street,” reflecting the asset’s growing legitimacy and integration into traditional financial markets.

However, the current plateau near all-time highs suggests a phase of consolidation, where market participants are reassessing risk and positioning for potential pullbacks. This environment necessitates disciplined trading and risk management to navigate the evolving landscape effectively.

Conclusion

Bitcoin’s trajectory near $120,000 is characterized by a delicate balance between bullish institutional support and short-term liquidity-driven corrections. Traders and investors should remain alert to order-book signals and market sentiment to avoid pitfalls associated with late entry. While the long-term outlook remains positive, a measured and selective approach is advisable to capitalize on Bitcoin’s growth while mitigating downside risks.