- Bitcoin closed above $121K despite a long upper wick signaling past buyer exhaustion.
- August 11 candle’s lower wick suggests strong demand absorbing selling pressure.
- Losing $121K could trigger a retest of $118.8K and possibly $112.6K range support.
Bitcoin price is holding above the $121K breakout level after testing both buying and selling pressure in recent sessions. Traders are closely monitoring the range edge as momentum indicators signal a tug-of-war between bullish continuation and a potential reversion.
Breakout Above the Range Edge
On July 14, Bitcoin printed a long upper wick near $121K, a classic sign of buyer exhaustion. That move was followed by a slide back into the established range. The event highlighted the importance of wicks in assessing market sentiment.
On August 11, another long upper wick appeared, but this time, Bitcoin closed above the $121K breakout line. This marked a key technical difference from the July move, suggesting that buyers were able to defend higher territory.
The current daily candle shows a long lower wick while holding above the breakout. This indicates that demand is stepping in to absorb intraday dips and maintain price strength at this critical level.
Wick Signals and Market Dynamics
CrypFlow noted that upper wicks often indicate failed follow-through, while lower wicks suggest fresh buying interest. Seeing both at the same boundary means liquidity is being tested on both sides of the market.
This creates a high-stakes battleground. If buyers hold, a breakout continuation could target higher levels beyond recent work highs. Price acceptance above the breakout level is key for sustained upward momentum.
Failure to hold would likely result in a swift move back into the range. The mid-range level near $118.8K would then become the next support to monitor for further market reaction.
Scenarios for Continuation or Reversal
For a bullish scenario, daily closes above $121K and higher lows on retests would reinforce buyer control. This would open the path for extended upside in the near term.
If sellers regain control, a decisive close below $121K could trigger a retest of $118.8K. Further weakness might bring the range floor at $112.6K into focus.
Volume expansion on up-moves and contraction on pullbacks would add credibility to whichever direction prevails. Traders should keep risk parameters tight around the $121K breakout line during this consolidation phase.
Source: coingecko
