Bitcoin’s recent peak at $123,100 has triggered warnings of a potential local top as on-chain metrics signal overextension.
The cryptocurrency quickly retraced 6% to around $115,700 after hitting the all-time high, with advanced NVT signals crossing above historical red deviation bands that typically coincide with cycle peaks.
The current bull market’s largest pullback remains only 23.48%, well below previous cycle corrections of 30-80%, indicating the underlying trend structure remains healthy despite short-term overextension signals.
Technical analysis reveals that Bitcoin is consolidating within a symmetrical triangle pattern, with support between $116,000 and $117,000 and descending resistance around $120,000.
Triangle Consolidation Tests $125,000 Breakout
Bitcoin’s 4-hour chart indicates consolidation within a symmetrical triangle pattern, with the apex approaching around $117,837.
Source: Marcus Corvinus
The formation creates compression between descending resistance and ascending support at $116,000-$117,000, building energy for eventual directional resolution.
This coiling effect typically precedes a significant expansion of volatility.
A bullish breakout above the red trendline would likely trigger a move toward $125,000, representing approximately a 6% upside from current levels.
Conversely, a breakdown below the green support level could drive prices toward $111,000, marking a roughly 6% downside risk.
The symmetrical nature suggests neither bulls nor bears have gained decisive control.
Multiple-layered support zones provide cushioning for potential declines, with institutional buying historically emerging at these levels.
The eventual breakout direction becomes crucial for determining near-term momentum and validating either continuation or correction scenarios.
Global Liquidity Cycle Enters Distribution Phase
According to Merlijn The Trader, Bitcoin’s correlation with the global M2 money supply reveals that the cryptocurrency has transitioned into “Distribution” territory from its previous “Accumulation” and “Manipulation” phases.
This macro framework suggests that while liquidity expansion continues supporting Bitcoin’s advance, explosive gains may become more measured and volatile as the cycle matures.
Complex Fibonacci analysis has also projected Bitcoin’s cycle peak timing toward October, suggesting a more extended timeline than immediate parabolic acceleration.
Source: TradingView
The $133,665 – $151,539 resistance zone represents ultimate targets, but the path involves multiple consolidation phases rather than linear advance.
Current levels around $117,000-$118,000 correspond to substantial volume clusters where institutional accumulation and distribution have occurred.
This technical congestion creates multiple layers of support and resistance that require patience to navigate effectively during the Distribution phase.
Best Wallet: Final Opportunity to Secure $BEST Tokens
Best Wallet’s $BEST token presale is approaching its final phase, offering one last chance for investors to secure positions before the allocation is sold out permanently.
The token offers reduced fees, early access to presales, and staking rewards, which are perks rare in projects.
$BEST token holders unlock multiple revenue streams through the expanding ecosystem.
Reduced trading fees and priority access to new project launches become increasingly valuable as Bitcoin approaches cycle peaks and altcoin opportunities multiply.
The token’s utility extends beyond basic wallet functions. Best Wallet’s version 2.5.1 introduced full Bitcoin support alongside 60+ blockchain compatibility, providing secure non-custodial storage during uncertain market periods.
Integration with the Rubic exchange aggregator enables optimal swap rates across 200+ DEXs, which is essential for portfolio rebalancing as Bitcoin tests key resistance levels.
The platform’s upcoming crypto-backed debit cards and advanced trading tools position users for the next phase of the cycle.
With Bitcoin potentially reaching $125,000+ or facing $111,000 correction risks, having exposure to both secure storage infrastructure and the underlying $BEST token creates diversified opportunities.
The presale’s limited remaining allocation and approaching completion create a final window for early adopter advantages.
The post Bitcoin Price Prediction: BTC’s $123.1K Peak Signals Local Top – Warnings of Pullback appeared first on Cryptonews.
