Bitcoin Shatters $120,000 Resistance – Here’s Why the Correction Is Now Locked In

Bitcoin just bulldozed through $120,000 like it was a paper wall. The breakout? Confirmed. The correction? Inevitable.

Why this matters: When BTC cracks a key resistance level, the market reacts—fast. This isn’t speculation; it’s price action 101.

The bulls had their fun. Now, the charts are flashing warning signs. A pullback isn’t just likely—it’s practically scripted by the same traders who’ll pretend they saw it coming all along.

Pro tip: Watch the leverage ratios. Nothing humbles crypto investors faster than an overleveraged market meeting gravity.

Bottom line: Bitcoin’s rally was a masterpiece. The correction? A predictable encore. (And yes, your favorite influencer will spin this as a 'buying opportunity'—just like they always do.)

In brief

• Bitcoin hit $123,250 before falling back toward $119,000, raising doubts.
• Traders warn of a possible bullish trap orchestrated via fake buy walls.
• Overbought RSI and low stablecoin reserves reinforce the hypothesis of a technical consolidation.
• Despite everything, the crypto momentum remains strong thanks to ETFs and a supportive macro environment.

Bitcoin, a rapid rise, a sharp pullback: the perfect trap?

The Bitcoin price reached $123,250 before retreating toward $117,200, leaving behind a trail of questions. This reversal intrigues. Because theare increasingly visible. The Material Indicators account warns: “Don’t get caught! The buy wall at $120.5k appears designed to lure late buyers before a support test“. 

And what followed confirmed this warning. According to CoinGlass data, the, with a possible drop to $114,000–115,000 if the pullback intensifies.

Trader CrypNuevo drives the point home:

We must stay alert for manipulation. This MOVE could be part of a weekly pump-and-dump pattern. Be careful.

What the indicators said: euphoria or calculated pause?

Technically, bitcoin’s price had remained in. But the signals are ambiguous. Theone of the most popular indicators,, a level often synonymous with overbought conditions. Conversely,, indicating an immature trend.

Joao Wedson from CryptoQuant observes growing tension:

Historically, when this indicator turns green (positive spread), bitcoin enters a parabolic rally, often driven by leverage and FOMO on derivatives.

One had to be wary of false signals then.are decreasing. This liquidity deficit could curb market enthusiasm without new inflows. QCP Capital remains cautious: “We prefer to stay selective and not chase the rally. Consolidation WOULD be healthy.”

Crypto under pressure, Bitcoin in stress: the next moves will unfold in July

The situation remains open. On one side,. On the other, doubts about an imminent consolidation are gaining ground.

• +10% for bitcoin in one week, despite the post-ATH correction;
• $432 million in short positions liquidated in 24 hours;
• $118,800: support identified by CoinGlass for a phase of technical pullback;
• 81% of Myriad users believe bitcoin will not fall below $100,000 in July;
• $2.407 trillion: bitcoin’s market capitalization, ranking it as the 5th largest global asset.

Among theis the publication of a key White House report on crypto strategy by July 22. And above all, a still fragile US macro context. Thecould inflate the public deficit by $3.3 trillion. Historically, this kind of environment drives investors toward scarce assets… like bitcoin.

But danger looms. If the FED decides to tighten policy earlier than expected, risk appetite could collapse. Along with it, part of the crypto bubble. It’s not the rise to fear. It’s what comes right after.

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