Bitcoin Faces Healthy Pullback After Hitting $123K High

Bitcoin is showing signs of fatigue after reaching a new local high of $123,000, with the price now pulling back toward the $118,000 range. Despite the retreat, Bitcoin remains in a macro bullish trend, and a correction toward the $110,000 level could be both likely and beneficial for long-term stability.

The recent price rally followed a confirmed breakout from a symmetrical triangle pattern, signaling a continuation of bullish momentum. However, two consecutive rejection candles near resistance suggest that upward momentum is losing steam. The Relative Strength Index (RSI) has dropped to around 68—still elevated, but no longer in the overbought zone—supporting the notion that buying pressure is easing.

Volume analysis reinforces this view. Although the breakout was strong, recent daily candles show diminishing demand. The $117,000–$115,000 range now acts as immediate support; if this zone breaks, Bitcoin could fall to around $110,000, potentially retesting the upper boundary of its prior consolidation.

On-chain data adds more context. Futures open interest remains near all-time highs, reflecting significant leverage in the market. This raises the risk of a deeper drop if volatility spikes. Additionally, funding rates are cooling, indicating reduced speculative activity.

Overall, a correction to $110,000 would not signal a bearish reversal, but rather a pause in an otherwise strong uptrend. Market participants should monitor key support levels and prepare for possible short-term volatility within a broader bullish outlook.