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The bullish trend in the cryptocurrency market halted on Tuesday, as the price of Bitcoin (BTC) quickly fell from its peak of over $126,000, with analysts indicating the likelihood of a slowdown in the short-term rise.
Where Bitcoin dropped to below $122,000, with a decline of 2.4% over 24 hours. Meanwhile, other major cryptocurrencies like XRP fell to $2.8862, DOGE to $0.2503, ADA to $0.8306, and AVAX to $28.43, with declines ranging between 5% and 7% during the same period.
The standard rise of Bitcoin is always followed by a quick pullback.
The price movement of Bitcoin seems familiar due to its continuous repetition; despite a 31% increase since the beginning of the year, buyers have not been given a chance to enjoy their gains, as every new record high is usually followed by quick and strong sell-offs.
For example, the price first rose to $109,000 before Trump's inauguration in January, but quickly fell to $100,000 within hours, and to $75,000 over three months.
On the other hand, Bitcoin's first move above $123,000 in July was met with a decline of nearly 10% in the following days, and a similar rise above $120,000 in mid-August was preceded by a drop of about 15% in the subsequent days.
For his part, Deribit options market manager Jan-David Bekinou predicted in a report on Monday that Bitcoin might retest the $118–120,000 area, which could pressure traders who missed the lows and joined the upward wave late.
He explained that if this pullback occurs, it would represent a buying opportunity with a consensus of technical indicators and the macroeconomic environment, for Bitcoin to rise above $130,000 during the last quarter of the year.
K33 research head Vetle Lunde pointed out that the derivatives market and ETF fund flows have seen excessive activity, noting that last week witnessed the highest accumulation of Bitcoin this year.
Where 63.083 BTC (worth about $2.7 billion) was added through U.S. ETFs, CME contracts, and perpetual contracts, surpassing the peak in May.
Bitcoin price analysis
Current price: $122,000.
Highest price in 24 hours: $123,500.
Lowest price in 24 hours: $119,800.
Market capitalization: around $2.35 trillion.
Change in 24 hours: -2.4%.
Technical indicators
Near resistance: $123,500 – $125,000.
Strong support: $118,000 – $120,000.
50-day moving average: $116,800.
Relative Strength Index: 68 (indicates near-term overbought conditions).
Future predictions
Short-term: $118,000 – $124,000.
Long-term: $130,000 – $140,000.
