Bitcoin’s Bullish Horizon: $120K in Sight if Bulls Keep Charging

Bitcoin teeters on the edge of a historic breakout—if demand holds steady, analysts see a clear path to $120,000.

Why the optimism? Buyers aren't blinking. Despite Wall Street's usual skepticism ('just a speculative asset, of course'), the market's defiance of gravity suggests a supply squeeze is brewing.

Key levels to watch: Any dip below $100K could trigger profit-taking, but sustained accumulation above that zone paints a target even traditional finance can't ignore.

Remember: Markets climb walls of worry. And right now, Bitcoin's wall looks more like a stepping stone.

• Bitcoin is trading at $96,075, down 1.28% within the last day, with a market capitalization of $1.92 trillion.
• There is a strong buy wall ranging between $90K and $95K on Binance, indicating a potential intraday bottom.
• The Fear & Greed Index fell to 22, reflecting increased risk aversion.

Bitcoin (BTC) has dropped below $95,000, retreating to levels last seen in May. This decline marks the continuation of lackluster momentum following the all-time high in October. Currently, Bitcoin is down 20% from its high, causing traders to question the sustainability of the bull run.

Currently, bitcoin is trading at $96,075, with a trading volume recorded at $158.90 billion in the last 24 hours, and a market capitalization of $1.92 trillion. The dominance level of Bitcoin stands at 58.84%. The price of BTC fell by 1.28% within the last 24 hours.

Buyers Re-enter as Market Momentum Shifts

As analyst crypto Patel highlighted that the short traders, or those who sold BTC in the $102,000 – $106,000 region, are now actively rebuying. Extremely strong Buy walls have been detected on Binance at $90,000 – $95,000. Analysts suggest this accumulation zone could act as an intraday bottom if global equities remain stable.

Bitcoin Downturn Reflects Broad Crypto Weakness

Renewed buying interest signals improving confidence. Market players are keenly observing overall conditions, as Bitcoin’s stability is also linked to overall global economic trends. The cautious entry of buyers indicates there is hope for a rebound, as long as overall macroeconomic trends are positive and there are no unforeseen circumstances.

Market sentiment is now defensive. The Fear & Greed Index dropped to 22, the lowest level since April. Analysts point to rising risk aversion as BTC decouples from equities and precious metals. Pressures include Fed uncertainty, unclear inflation and labor trends, slower liquidity inflows, and declining volatility preceding sharp moves.

The decline in Bitcoin intensified as it breached the $96,000 level on Friday. Buyers show limited urgency to “buy the dip,” while BTC remains 24% below its all-time high of $126,000.  The sharp liquidations were in line with the breakout below significant levels in BTC, resulting in the removal of more than $220 million within an hour and $600 million in 24 hours. 

Notably, this time, the market participants are cautious compared to previous instances. The increased macro uncertainties, decline in AI equities, and lack of confidence in the tech sector are causing risk aversion.

The future roadmap will depend on upcoming economic statistics and the decision the Fed makes in early December. DEEP drawdowns can reward waiting buyers, but it is difficult to recover from changed attitudes and rebalances. It is suggested to follow trends, and hold back on early momentum trading.