"Bitcoin declines after a historic peak.. Has the rise ended?"
1. Main event:
Bitcoin surpassed $124,500 (historic peak) and then dropped to $118,400 with a decline of ~5% in a few hours.
The drop is expected as profit-taking after the rises, and the upward trend is still intact.
2. Reason for the drop:
US inflation data (PPI) came in very high: 0.9% instead of the expected 0.2%.
Concerns about delaying interest rate cuts, although markets still expect a cut in September with a probability of >90%.
Volatile statements from the Treasury Secretary regarding Bitcoin purchases.
Outflow of funds from Bitcoin ETF (~$293 million).
3. Technical analysis:
Bitcoin has been moving in an upward channel since April.
Strong support at $115,200 – $116,000.
Resistance at $120,000, then $124,500, then $125,000 and $130,000.
4. Market implications:
Bitcoin has become more stable than alternative currencies (its decline is less).
This maturity makes it a relatively safe haven, but its growth is less intense than before.
Some investors are turning to riskier currencies in search of greater profits.
The current decline is normal and a buying opportunity as long as the price remains above the support area, and the overall trend for Bitcoin is still positive.
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