Bitcoin (BTC) is under pressure as its recent correction deepens, leaving traders cautious about further downside. After failing to hold above the $125,000 level, Bitcoin dipped below $124,000, entering a short-term bearish zone. Current trading activity suggests that the market could extend losses if key support levels fail to hold.

Bitcoin Price Action Shows Weakness

Bitcoin began a downside correction after testing resistance near $123,200. The price dropped below $124,000 and even breached $121,200, forming a low at $119,810. This movement highlights the strength of the bears in controlling short-term price dynamics.

The 100-hour Simple Moving Average (SMA) now acts as a resistance point near $121,500, and the hourly chart shows a bearish trend line forming around $122,750. Until BTC can break above this zone, downward pressure is likely to persist.

Key Resistance Levels to Monitor

Traders eye several resistance points that could influence the next leg higher:

• Immediate resistance: $121,750 – near the mid-range of the recent retracement.

• First key resistance: $122,250 – also the 61.8% Fibonacci retracement of the recent decline from $123,750 to $119,810.

• Stronger resistance: $122,750 – aligned with the bearish trend line.

• Higher levels: $123,500 and $124,000 – additional hurdles before challenging the $125,500 mark.

If BTC manages to climb above these zones, it could signal a potential reversal and renewed bullish momentum.

Support Levels Signal Caution

On the downside, Bitcoin faces several critical support levels:

• Immediate support: $120,750 – the first line of defense for buyers.

• Major support: $120,000 – a key psychological level.

• Further support: $118,500 – below which the market could face deeper corrections.

• Strongest support: $115,500 – failure to hold this level may hinder short-term recovery and increase volatility.

These support levels are crucial for maintaining market stability. A breach below $120,000 could accelerate the downside, attracting more selling pressure.

Market Sentiment and Technical Outlook

The current price action reflects caution among traders, as Bitcoin struggles to reclaim earlier highs. While short-term buyers may attempt to push the price back above $122,750, the bearish trend line and SMA resistance suggest that upside could be limited until a decisive breakout occurs.

Technical indicators, such as the Fibonacci retracement levels and hourly trend lines, highlight that BTC is testing both resistance and support zones simultaneously. Traders should watch these levels closely to gauge potential recovery or continued downside movement.

Conclusion: Traders Should Remain Alert

Bitcoin’s correction below $124,000 signals a period of heightened risk. Key resistance near $122,750 and support around $120,000 will likely dictate near-term price behavior.

While temporary rebounds may occur, failure to reclaim key resistance could extend the decline toward $118,500 or even $115,500. Traders are advised to maintain caution, implement stop-loss strategies, and monitor price action closely before committing to new positions.

BTC’s next moves will be influenced by both market sentiment and technical levels, and observing these zones will be critical for navigating the current correction phase.