Bitcoin Price Analysis: Healthy Pullback Before Another Surge to Fresh ATHs?
Bitcoin’s rejection from the $125K liquidity pocket has initiated a wholesome pullback towards the $120K area. The transfer seems corrective quite than impulsive, with sturdy confluence assist aligning across the 100-day shifting common and the prior breakout construction.
Technical Analysis
By Shayan
The Daily Chart
On the every day timeframe, BTC was rejected from the $125K–$126K liquidity zone, which coincides with the prior swing high and a key resistance cluster. The response has led to a retracement towards the $117K–$120K assist vary, an space strengthened by the intersection of the ascending trendline, the 100-day MA, and key Fibonacci retracement ranges.
A rebound from this area might validate it as a better low, setting the stage for renewed bullish continuation. Meanwhile, the RSI has cooled off from overbought territory, suggesting that momentum has reset and the market now has room to stabilize earlier than trying one other run-up. However, a every day shut beneath $117K would weaken this construction and open the door for a deeper correction towards $108K, the place the following demand zone and prior consolidation base align.
The 4-Hour Chart
On the 4-hour chart, Bitcoin’s short-term construction reveals clear indicators of momentum loss following the breakout above the earlier all-time high. After breaching $125K, the market printed a Three Drives sample, characterised by three consecutive highs with diminishing power, a traditional sign of purchaser exhaustion.
The correction that adopted has produced a wholesome retracement, with the $115K–$117K vary rising as the important thing assist space. This zone overlaps with vital Fibonacci retracement ranges, the decrease boundary of the breakout vary, and the short-term demand block, forming a essential confluence of technical assist. A robust bullish response from this zone might appeal to recent shopping for curiosity and pave the way in which for one more try towards $123K–$125K.
Conversely, failure to maintain this space would verify a shift in short-term momentum, possible exposing the decrease liquidity swimming pools close to $108K, the place Bitcoin beforehand consolidated earlier than its breakout.
Sentiment Analysis
By Shayan
The 1-week Binance liquidation heatmap offers clear perception into the dynamics behind Bitcoin’s current rejection and present pullback. A dense focus of liquidity clusters between $124K and $126K coincides precisely with the area that triggered the newest rejection, confirming {that a} substantial variety of leveraged brief positions had been opened as the value entered this higher band. The unwinding of those positions fueled the sharp response that adopted.
Below the present value, new liquidity pockets have shaped round $118K–$120K, indicating zones the place over-leveraged lengthy positions are possible to face liquidations if the value dips additional. This space might act as a magnet for short-term value motion, pulling BTC into these thresholds earlier than demand reemerges.
Interestingly, the heatmap additionally reveals vital liquidity concentrations above $126K, extending towards $130K–$132K. This cluster stays a serious goal for institutional and algorithmic gamers (“good cash”), suggesting that after the $126K resistance is reclaimed and cleared, Bitcoin might speed up quickly towards the following liquidity band.
For now, the on-chain panorama helps a short-term consolidation bias, because the market digests the current liquidation wave and awaits renewed directional momentum. Once the native demand zones stabilize and leverage resets, Bitcoin may very well be primed for one more upward leg towards the liquidity-rich $130K area.
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