Bitcoin Nears $120K Amid Rising Volatility, Analysts Warn of Larger Swings

Bitcoin Approaches $120,000 as Volatility Spikes

Bitcoin Approaches to $120,000 ahead of the weekly close, reigniting excitement and caution among investors. After bouncing from a two-week low near $114,500, BTC/USD hit a high above $119,000, signaling a crucial recovery attempt.

This price movement coincided with reports that the United States and China postponed the implementation of additional trade tariffs, providing short-term market relief.

Key Price Levels to Watch This Week

Crypto investor Ted Pillows emphasized the importance of the $119,500 level. He stated, “Bitcoin needs to break $119.5K to trigger a major move. Failure to do so could prolong consolidation.”

Technical analyst Rekt Capital observed that Bitcoin returned to a familiar trading range after a dip. He advised investors to monitor the lower range boundaries for potential retests.

Meanwhile, analyst CrypNuevo cautioned that BTC could retrace to close the daily wick near $114,500. He identified liquidation zones around $113,800 and projected a medium-term downside target between $113,600 and $114,500.

Analysts Brace for Larger Price Swings

Data from CoinGlass highlights the “max pain” short squeeze level near $119,650. Should Bitcoin climb toward its all-time high around $123,000, short positions could face liquidations exceeding $1.1 billion.

Coinank analysis confirms the $119,000–$120,000 range now serves as strong resistance due to concentrated liquidation clusters.

Analyst TheKingfisher warned that volatility may accelerate soon. He explained that many dealers are currently in short gamma positions, which can intensify price swings as they hedge.

“This dynamic could amplify volatility. Prepare for bigger price swings ahead,” he advised.

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