Is Bitcoin Preparing for a $130K Rally or Nearing Its Peak? An In-depth Price Analysis

Bitcoin has once again entered price discovery, trading just under $122,000. After months of consolidation and multiple unsuccessful breakout attempts, the bulls seem to have regained control. The cryptocurrency's recent breakout from its previous all-time high of $112,000 was marked by significant momentum, leading to speculation about how much more it can climb. However, a possible retracement into the $114K–$117K range might be needed to stabilize the market.

The four-hour chart reveals a clear breakout from recent ranges and significant price expansion, suggesting potential short-term exhaustion. Meanwhile, spikes in Bitcoin funding rates indicate a surge in long-side leverage following the breakout, which could make the market vulnerable to a flush. Though the sentiment remains bullish, it is slightly overheated, in line with current RSI readings and market structure.