Bitcoin News Today: Bitcoin Pauses at $123K ATH, 11% Correction Expected

Bitcoin's recent bullish surge has reached a critical juncture, with the cryptocurrency pausing at the $123K level. This pause suggests potential profit-taking and distribution, as investors may be looking to secure gains after the significant price increase. The current market dynamics indicate a likely corrective move toward the $111K support zone before the next upward leg.

Technical analysis reveals that Bitcoin's price has surged to a new all-time high (ATH) of $123K, following a break above the previous ATH at $111K. This move was driven by strong market demand and investor confidence, triggering a notable short squeeze. However, the upward momentum has temporarily stalled at this crucial resistance level, leading to a period of sideways consolidation. This consolidation is likely due to increased sell-side pressure as investors take profits.

On the daily chart, a corrective pullback toward the significant 0.5–0.618 Fibonacci retracement zone between $107K and $111K is anticipated. This retracement is a common occurrence in bullish trends and is expected to provide support before the next impulsive move higher. Until then, a period of consolidation is likely, with the price trading within a defined range.

In the lower timeframe, Bitcoin's consolidation is more pronounced, reflecting ongoing profit realization. Initially, the price action resembled a head and shoulders reversal pattern, but it has since evolved into a descending wedge, a typically bullish continuation pattern. The price continues to trade within this wedge, supported by a key ascending trendline currently positioned around $116K. This trendline has acted as a major support throughout the recent rally.

As long as the price remains confined between the wedge’s boundaries and this trendline, a consolidation range is in play. A break below the trendline could trigger a deeper correction toward the $111K support. Conversely, a breakout above the wedge’s upper boundary would signal the continuation of the bullish trend, potentially targeting the $123K ATH and beyond.

On-chain data from CryptoQuant indicates a notable increase in Bitcoin reserves on centralized exchanges, reaching their highest level since June 25th. This sustained inflow reflects ongoing profit-taking and distribution by investors, a dynamic that often signals weakening buy-side pressure and hints at a potential corrective phase. Historically, rising exchange reserves are associated with local market tops, as more BTC becomes available for potential sale. However, this metric alone should not be seen as a definitive trigger for immediate price drops. Broader market liquidity, sentiment, and demand dynamics remain key.

In essence, while elevated exchange reserves may introduce short-term selling pressure, the broader market structure for BTC remains bullish. Any corrective pullbacks should be viewed within the context of a still-intact longer-term uptrend, unless macroeconomic or technical conditions shift significantly. The current market dynamics suggest that Bitcoin is unlikely to revisit its ATH before testing the $111K support zone, providing a potential buying opportunity for investors before the next leg higher.