Bitcoin Eyes $120K: Key Price Levels to Watch

Bitcoin Price Momentum Builds Above $115,000

Bitcoin (BTC) is showing renewed strength, climbing 1.5% to trade above $115,000. On-chain indicators suggest a strengthening market, with analysts eyeing key price levels to watch for sustained upward momentum.

Derivatives Market Influence

A key factor influencing Bitcoin's price action is the derivatives market. With spot demand and ETF inflows softening, derivatives are "setting the tone," according to Glassnode's latest Week Onchain report. The report highlights a recovery in Bitcoin's volume delta bias, indicating that futures traders are absorbing sell pressure.

Glassnode notes, "Going forward, the evolution of derivatives positioning will be critical to navigating the market in this low spot-liquidity environment."

• Options open interest (OI) has surged to an all-time high of $54.6 billion, reflecting increased investor interest.
• This OI data shows a bias toward calls over puts, indicating a bullish sentiment with managed downside risk.

The $4.3 billion Bitcoin options expiry on Friday favors bullish bets, potentially paving the way for a rally to $120,000 if the price remains above $113,000.

Critical Bitcoin Price Levels

Currently, Bitcoin is trading around $115,400, facing resistance near $116,000. To secure a sustained recovery, BTC/USD needs to hold above $115,000.

Key levels to watch:

• Resistance: $116,000 - $121,000 represents a significant supply zone.
• Support:
  • $114,500 (50-day SMA)
  • $112,200 (100-day SMA)
  • $107,200 (Sept. 1 low) to $110,000 (psychological level)

Pseudonymous trader KillaXBT noted that Bitcoin is "now pushing to the previous monthly open" around $115,700, calling it "a crucial pivot point in terms of trend direction."

Liquidation Heatmap Analysis

CoinGlass data reveals liquidity clusters between $116,400 and $117,000. A break above this level could trigger a liquidation squeeze, pushing prices towards $120,000.

On the downside, significant bid orders are placed around $114,700, with the next major cluster between $113,500 and $112,000.

Disclaimer: This is not financial advice. Trading and investing in cryptocurrencies involve risk. Conduct thorough research before making any decisions.