Bitcoin News Today: Bitcoin Retraces 6% After $123,100 Peak, Consolidates in Symmetrical Triangle

Bitcoin's recent peak at $123,100 has sparked concerns about a potential local top, as on-chain metrics indicate overextension. The cryptocurrency quickly retraced by 6% to around $115,700 after hitting this all-time high, with advanced NVT signals crossing above historical red deviation bands that typically coincide with cycle peaks. This suggests that while the current bull market's largest pullback remains only 23.48%, well below previous cycle corrections of 30-80%, the underlying trend structure remains healthy despite short-term overextension signals.

Technical analysis reveals that Bitcoin is consolidating within a symmetrical triangle pattern, with support between $116,000 and $117,000 and descending resistance around $120,000. This pattern creates compression between descending resistance and ascending support at $116,000-$117,000, building energy for eventual directional resolution. This coiling effect typically precedes a significant expansion of volatility. A bullish breakout above the red trendline would likely trigger a move toward $125,000, representing approximately a 6% upside from current levels. Conversely, a breakdown below the green support level could drive prices toward $111,000, marking a roughly 6% downside risk. The symmetrical nature suggests neither bulls nor bears have gained decisive control, with multiple-layered support zones providing cushioning for potential declines, and institutional buying historically emerging at these levels.

The eventual breakout direction becomes crucial for determining near-term momentum and validating either continuation or correction scenarios. According to Merlijn The Trader, Bitcoin’s correlation with the global M2 money supply reveals that the cryptocurrency has transitioned into “Distribution” territory from its previous “Accumulation” and “Manipulation” phases. This macro framework suggests that while liquidity expansion continues supporting Bitcoin’s advance, explosive gains may become more measured and volatile as the cycle matures. Complex Fibonacci analysis has also projected Bitcoin’s cycle peak timing toward October, suggesting a more extended timeline than immediate parabolic acceleration. The $133,665 – $151,539 resistance zone represents ultimate targets, but the path involves multiple consolidation phases rather than linear advance. Current levels around $117,000-$118,000 correspond to substantial volume clusters where institutional accumulation and distribution have occurred, creating multiple layers of support and resistance that require patience to navigate effectively during the Distribution phase.