Why Bitcoin is pulling back today⁉️
1. Profit‑Taking After New ATH 🚩
After peaking near $123K yesterday, many traders cashed out to lock in gains. CryptoQuant’s Tarek J confirms this is normal behavior—not panic triggered by negative news.
2. Overbought Technicals**
Momentum indicators (RSI, MACD) are flashing overbought signals after the rally, suggesting a natural cooldown or consolidation toward the \$110–$120K zone.
3. Mixed Macro Signals**
Earlier bullish momentum was driven by optimism around “crypto week” policy in the U.S. ([ABC News][2]). But now, broader macro trends like liquidity shifts, Treasury yields, and the Federal Reserve's stance may be giving investors pause.
* Bitcoin surged to a record, and now traders are taking profits.
* The charts say it's due for a breather.
* And macroeconomic factors—like rising bond yields or Fed uncertainty—are nudging investors to stay cautious for now.
### 👀 What to Watch Next:
* **Support Levels**: \$120K first, then \~\$110K–112K (near the 50‑day EMA) ([DailyForex][3]).
* **Institutional Flows**: Continued ETF inflows or progress on regulatory clarity could reignite the rally.
* **Macro Moves**: Watch U.S. policy updates, Treasury yields, and liquidity signals: they all impact risk assets like Bitcoin.
**Bottom line**: Today’s decline isn’t a crash—it’s a typical pullback after a sharp rally. If support holds, we could see consolidation before the next leg higher.
