Urgent: Bitcoin Price Dips Below $120K Amid Bearish Warnings

Cryptocurrency enthusiasts closely watch market movements. Currently, a significant shift captures attention. Bitcoin (BTC) recently fell below the critical $120,000 mark. This decline follows growing bearish sentiment and concerning data. Many traders now anticipate a potential 10% Bitcoin price dip. Therefore, understanding the underlying factors is crucial for all market participants.

Bitcoin Price Dip: Sellers Regain Control

Bitcoin (BTC) recently approached weekly lows. This occurred after Thursday’s Wall Street open. Sellers actively pushed prices down. They prevented bulls from initiating new price discovery. Consequently, BTC/USD dipped below $120,000. The pair saw nearly a 3% daily loss. It continued to move through bid liquidity on exchange order books. This downward pressure signals a shift in market dominance. Sellers are clearly regaining control. Therefore, many anticipate further price movements.

Market data confirms this bearish trend. Popular trader Skew shared insights on X. He noted bid liquidity around $121,000-$120,000. However, Skew emphasized the need for seller absorption. This absorption would prevent a further sweep lower. Skew also suggested the market was ‘quite likely to be dominated by new shorts opening’ in the near term. This sentiment contributes to the overall negative outlook. It also highlights potential short-term strategies for traders. The current market structure indeed favors sellers.

BTC/USD one-hour chart. Source: Crypto News Insights/TradingView

Understanding the BTC Price Warning Signs

Several indicators now flash a significant BTC price warning. Trading resource Material Indicators utilized proprietary tools. These tools highlighted repeated tests of nearby support levels. Specifically, Bitcoin faced a third consecutive daily support test at a key trend line. Losing this trend line carries serious implications. It would open the door for a support test at the Q4 Timescape Level. This level sits around $114,000. Such a move would confirm deeper bearish momentum. Traders are watching these levels closely.

Moreover, exchange order-book data supports these concerns. An accompanying chart from Skew illustrated the situation. It showed bid liquidity weakening at critical junctures. Simultaneously, asks multiplied overhead. This imbalance indicates a lack of buying interest. It also suggests strong selling pressure. CoinGlass data further showed a lack of bid support much below the $120,000 mark. Conversely, asks multiplied overhead. This clearly signals potential for further downside. These combined factors paint a stark picture for Bitcoin’s immediate future. Consequently, caution remains paramount for investors.

BTC/USDT chart with exchange order-book data. Source: Skew/X

Expert Crypto Market Analysis Points Lower

Longer-term perspectives also reinforce the bearish outlook. Popular trader Roman provided his expert crypto market analysis on X. He reminded followers about recurring bearish divergences. These appear alongside low volume and a lack of momentum. This trend is visible on both weekly (1W) and monthly (1M) timeframes. Roman highlighted the tenuous situation. This persists despite Bitcoin’s recent all-time highs. He previously predicted the move from $107,000 to $124,000. Now, he anticipates a move lower. He specifically targets $108,000.

Roman’s analysis emphasizes a lack of strength in the current market. He stated, “I don’t see strength here.” This assessment aligns with other expert opinions. Many analysts believe a sustained bullish breakout needs stronger fundamentals. It also requires clearer market signals. Without these, downside risks increase significantly. Therefore, market participants should prepare for continued volatility. They must also consider potential further declines. The consensus among some experts points to a challenging period ahead.

BTC/USD one-day chart. Source: Material Indicators/X

Bearish Bitcoin Data: Targets Emerge

The convergence of bearish Bitcoin data suggests specific price targets. Roman’s prediction of $108,000 has gained traction. This level represents local range lows. It was already on the radar for October. Previously, Crypto News Insights reported on a separate analysis. That analysis suggested a bullish BTC price breakout would only occur after October. The current price action aligns with this cautious forecast. The market appears to be consolidating before any potential upward movement.

Furthermore, the liquidation heatmap from CoinGlass shows areas of vulnerability. A lack of strong bid support below $120,000 suggests quick drops are possible. If selling pressure intensifies, these levels could break. This would trigger further liquidations. Such events often accelerate price declines. Therefore, monitoring these liquidation zones is crucial for traders. The data collectively points towards a retest of lower price points. This scenario requires careful risk management. Consequently, traders are adjusting their positions.

BTC liquidation heatmap. Source: CoinGlass

Navigating Key Bitcoin Support Levels

Identifying and understanding Bitcoin support levels is vital in this environment. The $120,000 mark served as immediate support. Its breach opens the door to lower targets. The next significant level to watch is $114,000. This aligns with Material Indicators’ Q4 Timescape Level. A break below this could further validate the bearish outlook. Ultimately, the $108,000 level represents a critical psychological and technical support. If this level fails, Bitcoin could face a more substantial correction.

Investors must exercise caution. They should conduct thorough research. Every investment and trading move involves inherent risk. The current market signals emphasize the importance of due diligence. While recent all-time highs brought optimism, the current data suggests a cooling period. Staying informed on these key support and resistance levels helps investors make educated decisions. This article does not contain investment advice or recommendations. Readers should always conduct their own research before making financial decisions. The market remains dynamic, and careful analysis is essential for navigating its complexities.