TLDR
- Bitcoin surged above $119,000 Sunday, recovering from two-week lows near $114,500
- Key resistance levels identified at $119,500-$120,500 range that must break for continued upward movement
- Liquidation data shows over $1.1 billion in short positions could be cleared if BTC reaches $123,000 highs
- Analysts predict increased volatility and larger price swings in the near term
- Technical indicators show bullish momentum with price trading above key moving averages
Bitcoin price climbed above $119,000 on Sunday as the cryptocurrency extended its recovery from recent lows. The move brought BTC close to important resistance zones that traders are watching closely.
The latest surge came after Bitcoin bounced from near $114,500 earlier this week. This represented a recovery from two-week lows that had concerned some market participants.
Data shows Bitcoin is now trading above its 10-day simple moving average. The cryptocurrency also broke above a bearish trend line that had resistance at $118,300 on hourly charts.
Critical Resistance Levels Ahead
Multiple analysts have identified key price points that Bitcoin must clear for continued upward momentum. Crypto investor Ted Pillows noted that BTC needs to break above $119,500 for a major move higher.
$BTC needs to break above $119.5K for a big move.
If that doesn't happen, this consolidation will continue.
I think BTC could break above this level next month which will start the next leg up. pic.twitter.com/Roj7lwYri4
— Ted (@TedPillows) July 27, 2025
“If that doesn’t happen, this consolidation will continue,” Pillows explained. He suggested Bitcoin could break above this level next month to start another leg up.
Trader Rekt Capital focused on a slightly higher range ceiling just below $120,000. He indicated that any dips into the range low would represent a retest attempt to confirm the reclaim.
Bitcoin has Daily Closed above the blue Range Low, kickstarting a break back into the very briefly lost Range
Any dips into the Range Low (confluent with the new Higher Low) would be a retest attempt to confirm the reclaim$BTC #Crypto #Bitcoin https://t.co/65vWRJGSUt pic.twitter.com/wgavHZXhLa
— Rekt Capital (@rektcapital) July 27, 2025
Technical analysis shows the next key resistance sits at $120,500. A close above this level could send Bitcoin toward $122,500 and potentially the main target of $123,200.
Liquidation Zones in Focus
CoinGlass data reveals the maximum pain level for BTC shorts sits around $119,650. Should Bitcoin return to challenge all-time highs near $123,000, short liquidations would total over $1.1 billion.
Analysis platform Coinank identified strong resistance forming around the $119,000-$120,000 range. This area shows dense liquidation clusters that could impact price movement.
CrypNuevo warned that downside risks remain present. He identified a main liquidation level at $113,800 as a potential target if Bitcoin fails to maintain current levels.
The downside liquidation cluster ranges from $114,500 to $113,600 according to his analysis. This represents a natural target area in the medium term if selling pressure increases.
Volatility Expected to Increase
Analyst TheKingfisher warned of heightened volatility on short timeframes. He noted predominantly red signals on the Bitcoin gamma exposure chart.
This indicates dealers are heavily short gamma, suggesting they may amplify volatility to hedge their positions. The analyst expects potentially larger price swings in the near term.
Current technical indicators support the bullish outlook. The hourly MACD is gaining pace in the bullish zone while the RSI sits above the 50 level.
Major support levels sit at $118,600 and $117,250. The 50% Fibonacci retracement level from the recent swing low to high provides additional support at $117,250.
If Bitcoin fails to clear the $120,500 resistance zone, it could face another decline. The first major support would be near $117,800, followed by $116,600 and the main support at $115,500.
Bitcoin currently trades above $118,800 and the 100-hour simple moving average, showing continued strength above key technical levels.
