Bitcoin News Today: Bitcoin Drops 4% After Hitting $123,000 All-Time High

Bitcoin's price has recently hit a new all-time high, surging to approximately $123,000 before retreating to the $118,000 range. This rapid ascent confirmed bullish momentum across the market, but the current trend indicates a period of consolidation. The critical question now is whether this is a temporary cooldown or the beginning of a more significant pullback.

A closer examination of the 4-hour chart reveals signs of short-term weakness, but also highlights critical support zones that could act as buffers against a major crash. The current 4-hour chart shows that support at $118,000 has been breached, as indicated by the red candle drop below the orange horizontal zone and both moving average lines (9 and 21 EMA). The next major support level is at $116,000, which aligns with the previous consolidation zone from earlier in the month. If $116,000 fails to hold, the $110,470 and $109,000 levels come into play, which many analysts now mention as potential retracement targets.

The Relative Strength Index (RSI) is also signaling weakening momentum. With a current RSI around 45.5, the bullish strength is cooling, and traders might be entering a more cautious phase. While a drop to $110,000 is possible, it does not necessarily signal the end of the bull run. The macro trend remains bullish, with Bitcoin still trading well above its 21 EMA on the daily chart. The last correction brought Bitcoin down only about 7% before buyers stepped in, a standard move after a parabolic rise. As long as Bitcoin remains above $109K–$110K, the structure stays intact for another push higher in the coming weeks.

If Bitcoin reclaims the $118K zone and prints a higher low, bulls might regain control and test $123K again. However, if sellers dominate and push Bitcoin below $116K, prepare for a deeper dip toward $110K, where bargain hunters might step back in. Keep an eye on RSI recovery, price action around $116K, and potential bullish divergence. This is a key zone that could dictate the next big move.