Bitcoin Faces Critical Resistance: Brace for a Potential $111K Pullback

Bitcoin's bull run hits a wall—key resistance threatens to slash gains by $111K.

Here's why traders are sweating the charts.

When Bitcoin stumbles at resistance, the drop can be brutal. This isn't your grandma's savings account—welcome to crypto volatility.

Analysts spot trouble ahead. The $111K pullback scenario isn't just FUD; it's basic technicals screaming 'overbought.'

Meanwhile, Wall Street still thinks 'blockchain' is a type of Peloton accessory.

Price Momentum Slows Below Key Resistance

Despite a strong multi-month uptrend, bitcoin has encountered repeated resistance at the $120,000 level. Each attempt to break through has been met with selling pressure, indicating that the market may be entering a cooling-off phase.

Some traders remain optimistic that this is just a brief pause before further gains, but a growing number of analysts are urging caution. The concern now lies in the structure of the recent rally — particularly an unusual gap in price activity that could draw Bitcoin back down before it resumes its climb.

On-Chain Data Reveals a Key Price Gap

According to analysis from CryptoQuant contributor CryptoMe, a notable area of Bitcoin’s recent price movement was largely untouched during its surge earlier this month. Between July 9 and July 14, Bitcoin leapt from $110,000 to $123,000 in a steep and sudden move, bypassing a critical range between $111,000 and $117,000.

This rapid price increase happened with limited retail activity, suggesting that institutional buyers were primarily responsible for driving the rally. As a result, that range now shows what on-chain analysts refer to as an “unrealized gap” in Bitcoin’s UTXO (Unspent Transaction Output) histogram.

“When the market moves this quickly, it often leaves behind levels where few transactions occurred,” explained CryptoMe. “These gaps tend to get filled over time, as price eventually revisits those zones to establish stronger support.”

While Bitcoin has recently touched the upper part of this untested range — between $115,000 and $117,000 — the lower boundary around $111,000 remains unvisited. That gap has caught the attention of analysts who believe that Bitcoin may still dip to fill this void before continuing its uptrend.

Historical Trends Support Pullback Theory

CryptoMe’s warning is not without precedent. Bitcoin has a history of retracing its steps to revisit price levels that were previously skipped during parabolic rallies. A clear example occurred in 2024 when the cryptocurrency surged from the $70,000 range to over $110,000 without establishing much volume between. That skipped range was eventually retested and filled later that year.

This kind of pattern is not uncommon in technical analysis, where unfilled gaps often serve as magnetic zones that price action gravitates toward. Analysts believe that even in bullish market conditions, price tends to normalize by filling in such areas before moving decisively higher.

“If history is any guide,” CryptoMe noted, “we could very well see Bitcoin revisit $111,000. What’s unclear is whether this pullback happens soon, or after one more leg higher — possibly toward $140,000 — before a correction.”

Investors Cautioned on Risk Exposure

With Bitcoin still in a strong macro uptrend, the long-term outlook remains positive for many market participants. However, near-term volatility is now back in focus, especially for traders using leverage or those heavily exposed to recent positions.

CryptoMe urges investors to take the possibility of a $111,000 retest into account when evaluating their risk strategies. “Even in a bullish environment, corrections can be sharp and quick,” he said. “It’s not about panic, but about preparation.”

This advice echoes broader sentiment from technical analysts who emphasize that no uptrend is linear. Consolidation phases, even sharp dips, are normal parts of any market cycle — particularly for volatile assets like Bitcoin.

What Comes Next for Bitcoin?

Looking ahead, all eyes remain on the $120,000 barrier. A clean breakout above that level, supported by volume and strong demand, could invalidate the pullback thesis in the short term and put Bitcoin on track toward new milestones, such as the projected $140,000 resistance.

But unless that breakout happens soon, the path of least resistance might lead downward — temporarily. A healthy retest of the $111,000 level WOULD not necessarily signal the end of the bull market but could instead provide the foundation for a more sustainable rise in the future.

For now, Bitcoin investors are being reminded that even in a market with strong fundamentals and institutional support, careful risk management remains essential.