Recently, Bitcoin has attempted to break through the key resistance level of 120,000 USD multiple times, but has failed to do so, raising concerns in the market about its subsequent trend. This important price point has become a dual barrier of technical and psychological nature, and failing to break through effectively multiple times may lead to Bitcoin stagnating.

In terms of technical indicators, the 26-day and 50-day exponential moving averages are gradually approaching the current price of Bitcoin, which may further intensify market pressure and force Bitcoin into a period of volatility. More concerning is that as it approaches historical highs, trading volume has not shown the significant increase that would be expected, reflecting a lack of confidence among buyers.

Historical experience shows that a real breakthrough is often accompanied by a significant rise in trading activity to resist selling pressure and maintain upward momentum. However, there is currently a lack of such strong support, increasing the likelihood of a false breakout. If buying power cannot quickly regain dominance, Bitcoin may face a risk of correction.

In the short term, market participants should closely monitor the two key support levels of $116,350 and $114,380. On the other hand, if a breakout above $120,000 occurs with high trading volume, it may initiate a new round of upward movement.

Overall, Bitcoin is currently at a critical juncture, and market sentiment is somewhat cautious. Investors need to remain vigilant and closely monitor price trends and changes in trading volume to adjust their strategies in a timely manner. At the same time, it is important to recognize the high volatility of the cryptocurrency market, and effective risk management is crucial.