Fiat is pouring out from Gox's order book. Bears are better equipped for the next assault to $125.
It's crucial for the bulls to win that battle. If they win it for the second time the battlefield will be full of bear corpses, and they won't dare to try to take that spot again.
If they make it fall... Well, we will see much cheaper coins (below $120), and a mid term downtrend would be expected.
I disagree, $125 is not important, $120 has much stronger support and is the real line bulls have to defend. And even if it breaks I don't expect a mid term downtrend to form, just a retreat to former stable values in the 105-120 range.
Many traders will just sell and prepare for bears ruling if $125 is broken because that would mean that the trendline that was drew from the $79 and $103 lows is gone (30 days chart).
I agree that breaking $120 would be VERY BAD for bulls, while a breaking $125 could be reversed with enough faith... Anyhow, if $125 is broken is more likely that $120 will be broken too, triggering a bear market before testing the real tipping point, which is $166.43.