Bitcoin News Today: Bitcoin Retreats From $124.4K Peak Amid Signs of Bull Trap and Selling Pressure

Bitcoin has recently surged past its previous all-time high, only to quickly reverse direction, raising concerns among traders that a classic bull trap may be in play. The price briefly touched $124.4K before encountering significant selling pressure, pulling back toward the $118K support level. This sharp correction has drawn attention from technical analysts, who highlight the potential for a consolidation phase between $116K and $124K before the next major directional move [1].

On the daily chart, the failure to maintain the all-time high suggests a lack of sufficient follow-through buying. The retracement toward the $118K level is particularly important, as it aligns with the lower boundary of an ascending channel. A firm break below this level could indicate a shift in market sentiment and potentially open the door to further downside. Conversely, a successful rebound here may signal continued bullish momentum in the long term [1].

On the 4-hour chart, the recent price action reflects a liquidity-driven reversal. The price initially surged past a key resistance level, triggering stop-loss orders and breakout buys before sharply reversing. This pattern is commonly associated with institutional activity and short-term volatility. The price has since broken below the most recent swing low, suggesting early signs of a potential structural shift in the short-term trend [1].

On-chain data further reinforces the possibility of near-term selling pressure. Binance’s Mean Inflow — which measures the average amount of BTC being deposited to the exchange — has seen a sharp spike. High inflows typically coincide with increased trading activity, often driven by margin collateral, portfolio rebalancing, or large holders preparing to offload assets. These patterns have historically preceded short-term market weakness when not accompanied by strong demand from buyers [1].

Additionally, positive net flow — where inflows exceed outflows — has also increased on Binance, indicating that more BTC is being deposited than withdrawn. This growing imbalance suggests that holders are positioning for either trading or hedging, potentially increasing the likelihood of downward pressure in the absence of strong spot demand. Analysts are closely monitoring these indicators to gauge the next likely direction for Bitcoin [1].

As the market remains in a consolidation phase, traders are advised to watch closely for a clear breakout from the $116K to $124K range. Until such a move occurs, price action is likely to remain choppy, with liquidity clusters at both ends of the range attracting active trading strategies.

Source: [1] Bitcoin Price Analysis: Classic Bull Trap Emerges After BTC’s Record High (https://cryptopotato.com/bitcoin-price-analysis-classic-bull-trap-emerges-after-btcs-record-high/)