Bitcoin is nearing the $120,000 mark as traders increase liquidity on both sides of the spot price, with bulls looking to push the market higher. Long-term bearish divergences are causing doubt about the future of the Bitcoin bull market.

Data shows a cooling of short-term BTC price volatility, with potential support at $118,500 and a target of $123,000 for overhead ask liquidity. Open interest on derivatives markets is expected to lead to a surge in selling before Bitcoin and alts rally again.

Bearish RSI divergences on daily and weekly timeframes are causing concern for some traders, with the potential for a correction as Bitcoin approaches the $124,500 mark. Volume indicates a lack of strength, leading to warnings to be cautious when holding at current levels.

Read more at Cointelegraph: Will Record Open Interest Spark A Bitcoin Price’ Liquidity Flush?’