Bitcoin has recently reached a new record, but heightened volatility is evident, indicating a profit-taking scenario.
Daily Chart Analysis
On the daily timeframe, Bitcoin buyers successfully pushed the asset above its previous all-time high at $124.4K. However, this breakout was fleeting, as heavy selling pressure swiftly reversed the move, pulling the price back to a critical support level around $118K. This level will be crucial for determining long-term prospects.
4-Hour Chart Analysis
On the 4-hour chart, a classic liquidity hunt was evident, with prices sweeping above recent highs before sharply reversing. Currently, Bitcoin appears to be consolidating within a range of $116K to $124K. Until a clear breakout occurs, short-term movements are projected to remain choppy.
On-chain Analysis
Recent on-chain data indicates a sharp increase in mean inflow to Binance, suggesting preparation for potential selling. High inflows show that more Bitcoin is being transferred into trading wallets, which could lead to lower demand and increased volatility, particularly if large holders decide to sell.
Bitcoin exhibits significant volatility following its record high, with ongoing movements dependent on buyer and seller dynamics.
