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Key Takeaways:
- Bitcoin’s price is locked in a tight range, with $120,222 resistance and $117,697 support forming a critical band.
- A $14.39 million liquidation wall at $121,100 poses a significant test for bullish momentum.
- Recent short liquidations suggest a bullish sentiment shift, but a breakout requires strong trading volume.
Bitcoin is currently trading within a narrow range, holding at $118,456 with just a 0.2% gain over the past week, as market participants eye a large liquidation cluster just above current levels. With support firm at $117,697 and resistance pressing at $120,222, the short-term trajectory hinges on the ability to break past key liquidity zones.
Liquidation Heatmap Reveals Pressure Point at $121,100
Data from Binance’s liquidation heatmap reveals a major liquidation wall near $121,100, where over $14.39 million in leveraged positions are at risk. This suggests that the area could act as a near-term ceiling, as traders cautiously adjust positions ahead of any decisive move.
This high-leverage cluster indicates that many short positions are protected in this region. A sudden price spike through this level could trigger a cascade of liquidations, potentially fueling a sharp upward breakout. Conversely, failure to pierce this zone could lead to renewed consolidation between $117K and $120K.
Looking at liquidation levels, there’s a significant wall forming around $121,100, which suggests Bitcoin $BTC may be preparing for another short-term rebound. pic.twitter.com/9USWrK0KPO
— Ali (@ali_charts) July 23, 2025
Long vs Short Liquidations Signal Bullish Bias
According to BTC’s Total Liquidations Chart, the market has shifted notably since the start of 2025. Earlier this year, Bitcoin hovered around $90,000–$95,000 before experiencing a significant drawdown in late February, leading to over $565 million in long liquidations.
However, in July, the momentum appears to have turned. Short positions have faced increased pressure, with several liquidation events exceeding $200 million, suggesting bearish traders are being squeezed as Bitcoin climbs toward resistance levels. This inversion signals a more bullish undercurrent, even as price volatility remains muted.
Also Read: Strategy Inc. Launches $500M STRC IPO for Bitcoin
Support Holds as Price Awaits Breakout Catalyst
The critical $117,697 support level has held firm throughout July, providing a reliable base for price consolidation. Meanwhile, the continued failure to break the $120,222 resistance highlights the importance of market volume and sentiment near the $121,100 threshold.
A breakout above $121K could pave the way for a move toward $125,000, while a rejection may see Bitcoin trapped in the $117K–$120K range for longer. Traders are closely watching liquidation clusters to assess potential breakouts or rejections.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
