Bitcoin has experienced significant volatility, dropping 7% after hitting a record high of over $124,000. This raises questions about the strength of the current bullish cycle.
Bitcoin's Drop and Its Causes
After reaching a record above $124,000, Bitcoin's price sharply fell by 7%. This has raised doubts about the strength of the bullish cycle the cryptocurrency market is facing.
Indicators Suggesting a Possible Reversal
A key indicator known as the Exchange Whale Ratio is approaching a level historically associated with market bottoms. Analyst SunflowrQuant notes that this indicator often signals the beginning of a strong bullish phase. He draws attention to values showing the activity of major players on exchanges.
The Future of Bitcoin: Where Is the Price Heading?
Data shows that a significant concentration of liquidated positions has formed around the $120,000 mark. These liquidity zones may attract short-term bullish momentum. If selling pressure remains controlled, a return to $120,000 seems plausible in the near term; however, a decline to the $111,961 level cannot be ruled out.
The current situation with Bitcoin demonstrates uncertainty between a bullish recovery and potential corrections. The positions of large holders will be key for further price movements.
