Deribit Exchange Data Shows Bitcoin Bullish Exhaustion at $120K as Ethereum Hits 7-Month High

Bitcoin's bullish momentum shows signs of severe exhaustion as it struggles to break decisively above the $120,000 level. Deribit-listed options data reveals significant positive dealer gamma at $120,000 and $120,500 strikes, creating a volatility-suppressing environment where market makers buy dips and sell rallies. The $116,000-$117,000 support zone remains critical—a breach could trigger a retest of May's $112,000 lows, while sustained strength above $120,000 may propel BTC toward record highs.

The three-line break chart's microscopic 0.12% green bar on July 22 signals troubling momentum depletion, suggesting an extended pullback may materialize despite the broader uptrend. Resistance clusters at $120,000 and $123,181, with layered support between $116,000-$117,000.

Ether outperforms with a 2% surge to seven-month highs near $3,937, decisively invalidating last week's Doji indecision pattern. The ETH/BTC ratio strengthens as ethereum capitalizes on Bitcoin's consolidation phase.