Bitcoin shows resilience against the pullback in the market, waiting for a breakthrough at the key resistance of $120,000.

Despite the overall market falling more than 5% in a day, Bitcoin has shown rare strength this week. As of the time of writing, the BTC price has only dropped by 0.6%, stabilizing around $118,000, demonstrating a clear resistance to falling. However, even with the short positions pressure easing, the market has not truly initiated a rebound. The current trend resembles a "pause" rather than an "invalidating".

Selling Pressure Eases: Taker Sell Volume Plummets 93% On July 25, Bitcoin's "Taker Sell Volume" reached a local high of nearly $17.8 billion. However, as of now, this figure has plummeted to around $1.2 billion, a decrease of 93%.

The sharp decline in this data indicates that active selling behavior in the market has significantly decreased, and short positions have gradually exited.

Taker Sell Volume reflects the total amount of funds dominated by sellers in transactions (i.e., market price sell orders). Usually, a decrease in this data indicates a weakening of market panic sentiment, exhaustion of short positions momentum, providing a technical premise for a market rebound.

However, the price of Bitcoin has not risen accordingly, indicating a lack of an upward breakthrough "trigger point" — the market is waiting for new catalysts to ignite buying.

NUPL indicator repeatedly at high levels, explaining why the breakthrough has been delayed The reasons hindering Bitcoin's breakthrough may be related to psychological factors, and the NUPL (Net Unrealized Profit/Loss) indicator provides clues. In the past two weeks, BTC has repeatedly attempted to breach the $119,000–$120,000 range (on July 14, 17, 22, and 27), and each time it touched this range, the NUPL rose to around 0.57–0.58, after which the price experienced a fall.

This indicates that the $120,000 area has become a significant profit-taking zone, with investors tending to reduce their positions here.

Currently, NUPL has slightly retreated, but the price remains high, indicating that some profits have been realized, selling pressure has been initially released, and the market is waiting for a new direction to choose.

The NUPL indicator measures the overall market's unrealized profit situation, reflecting the potential selling motivation of holders. When NUPL is high and prices stagnate, the market tends to correct; while a decline in NUPL and stable prices may indicate that a new round of upward momentum is about to begin.

Bitcoin still holds key support, breaking above $120,000 is a prerequisite for bullishness Structurally, BTC has attempted multiple times to break through $119,000 without success, but the key support in the $117,000–$118,000 range remains firmly held. This area coincides with the Fibonacci 0.382 and 0.5 retracement levels, providing clear technical support.

What truly suppresses the rise is the "dual resistance of technology and psychology at $120,000:"

• This position corresponds to the Fibonacci 0.786 retracement.
• NUPL has recently peaked multiple times in this range.
• Multiple failed attempts to break through effectively have formed a strong psychological barrier.

If this resistance zone is effectively broken, Bitcoin is expected to rise rapidly to $122,000 or even higher.

However, if the support at 117,000 USD is breached, the short-term structure will completely turn bearish, potentially testing 114,000 USD or even lower regions.

Conclusion:

The current trend of Bitcoin shows a rare resilience against fall. Although short positions have exited, a clear catalyst is still needed to break through $120,000. As long as the support at $117,000 holds, the bullish structure remains valid. Investors should pay close attention to the price performance in the range of $118,000–$120,000. Once a breakout is confirmed, BTC is expected to embark on a new round of upward movement.