Bitcoin Price Drops After Rejection At Key Supply Zone

The Bitcoin (BTC) price fell to around $117,000 at press time after declining 0.59% in the last 24 hours.

The move followed a brief rally to a new all-time high near $124,000. Analysts attributed the decline to repeated rejection at a supply area and outlined levels to watch for either recovery or further losses.

Bitcoin Price Struggles at Supply Zone

The BTC/USD price set a record high near $124,000, slightly above its previous peak near $123,000.

The advance was short-lived. Sellers entered the market near the supply zone, pushing the price lower.

According to a market analyst, the rejection confirmed the zone as strong resistance. The bias in the short term remained neutral to bearish unless the BTC price could break and hold above this level.

The analyst identified the “red box” area, a marked resistance region, as the zone to watch for a sustained bullish push.

The same source said the BTC price had moved within the Monday trading range, first testing highs and then lows.

This range-bound movement suggested consolidation rather than a clear upward breakout. If the Monday low held on the one-hour chart, a rebound toward the $121,000 fair value gap was possible.

The analyst added that only a clean move above $120,000 would open the way toward price discovery.

Technical View on Bitcoin Price Levels

While some analysts expected a continued rally toward $130,000 or higher, the market showed signs of hesitation.

The repeated inability to clear resistance pointed to a possible retest of lower levels.

The $120,000 level served as the first area of interest for buyers seeking renewed momentum. A close above that threshold could shift sentiment in favor of the bulls.

In contrast, a break below near-term support could trigger deeper selling pressure.

One analyst cited $114,700 as a key downside level. This price aligned with a long-term ascending trendline visible on higher-timeframe charts.

Such trendlines often act as significant technical markers, where market participants reassess direction.

The weekly Relative Strength Index (RSI) was still positioned to allow further gains, suggesting that momentum had not been fully exhausted. However, analysts said a failure to hold this trendline could lead to increased volatility.

Resistance and Support Guide Next Move

The immediate focus remained on whether BTC could reclaim and hold $120,000. Without this move, resistance at the supply zone was likely to continue capping rallies.

A sustained break above the zone could set up a test of higher targets projected earlier in the week.

On the downside, the $114,700 long-term trendline was a critical checkpoint. If the BTC/USD price reached this level, traders would monitor reactions closely for signs of either stabilization or further breakdown.

At press time, the market was consolidating, with no confirmed breakout in either direction.

Analysts viewed the situation as a technical standoff between buyers defending key supports and sellers holding the line at established resistance zones.

The next decisive move was expected to come from a confirmed break of one of these levels.