Bitcoin Rejected Near $120K – Bears Wake Up!

[madmax]

First of all, I have to say that Bitcoin’s movements over the last 12 days have been a bit difficult to trade, generally, the hardest market to make a profit in is the range market with a swing movement.

Bitcoin(BTCUSDT) is currently trading near the Resistance zone($121,000-$119,500), Cumulative Short Liquidation Leverage($121,336-$120,000), and the upper line of the descending channel.

Since Bitcoin has lost support lines, we can consider this increase in Bitcoin over the last two days as a pullback to the support lines(broken). Do you agree with me!?

In terms of Elliott Wave theory, it appears that Bitcoin is still completing the main wave B. The main wave B is a Regular Flat(ABC/3-3-5). The structure of the microwave B of the main wave B was a Double Three Correction(WXY).

Additionally, the SPX 500 index(SPX), which Bitcoin is correlated with, is poised for a correction in my opinion, which could also impact Bitcoin.

Also, unlike previous Mondays, MicroStrategy has NOT purchased Bitcoin, and the company currently holds 607,770 BTC.

Old Bitcoin wallets also seem to be waking up to the fact that they can create movements in the crypto market. "In recent days, 471,867.8 BTC worth $56.39 million have been transferred from old wallets from 2012 to 2017.".

I expect Bitcoin to decline to at least the Support zone($116,900-$115,730) and fill the CME Gaps in the coming hours.

New CME Gap: $119,500-$118,295

CME Gap: $115,060-$114,947

Cumulative Long Liquidation Leverage: $117,401-$116,615

Please respect each other's ideas and express them politely if you agree or disagree.

Bitcoin Analyze (BTCUSDT), 1-hour time frame.

Be sure to follow the updated ideas.

Do not forget to put a Stop loss for your positions (For every position you want to open).

Please follow your strategy and updates; this is just my Idea, and I will gladly see your ideas in this post.

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[rafihasan]

Great analysis. I also think the recent move up is just a pullback after losing key support levels. The descending channel and liquidation zones make it tricky to trade right now. The CME gaps could act as targets for a drop soon.

[Nahiar806]

I like how you included Elliott Wave and SPX correlation in your view. It’s easy to overlook how much Bitcoin still moves with the broader market. The fact that MicroStrategy hasn’t bought recently might mean less support from big players too.

[Maxwell]

The transfer of old Bitcoin wallets caught my attention. It might mean some long-term holders are starting to take profits or reposition. Combined with the technical setup, it could suggest a short-term pullback before the next big move.