Bitcoin Faces Local Peak at $120K as Bullish Momentum Fades

Bitcoin’s recent rally appears to have reached a temporary top, with $120,000 emerging as a potential short-term peak. After an explosive surge from the $113,000 range to above $124,000, the cryptocurrency is showing clear signs of fatigue. The market’s inability to sustain its upward momentum suggests that a cooling phase could be underway rather than a continuation toward the next target at $150,000.

On the daily chart, Bitcoin’s repeated formation of candles with long upper wicks signals declining buying pressure and increased profit-taking. The 20-day EMA continues to act as a strong support level; however, the absence of follow-through volume indicates traders’ hesitation to push the rally further. The Relative Strength Index (RSI) hovering around 60 reinforces this sentiment — while Bitcoin isn’t overbought, much of its short-term bullish energy appears depleted after the previous parabolic move.

Historically, such patterns often lead to sideways consolidation or a corrective phase, especially when rallies lack sufficient volume. Key support zones lie around $117,000, followed by the 50-day EMA at $114,000 and the 100-day EMA near $113,000. Should Bitcoin fail to hold these levels, the price could revisit the $107,000–$108,000 range, where the 200-day EMA provides crucial long-term support.

Despite these short-term challenges, Bitcoin’s broader macro outlook remains bullish. However, without renewed buying volume or a fresh catalyst, breaking above the $120,000–$125,000 resistance zone seems unlikely in the near term. For now, $120,000 represents not just a milestone, but a possible turning point — a level where the market pauses, consolidates, and prepares for its next decisive move.