Bitcoin Surges to $124,500 Before Quick Pullback to $121,500

Bitcoin reached a new all-time high of $124,500 before dropping to $121,500. Analysts are divided on the significance of this pullback: some see it as a loss of momentum, while others view it as a necessary pause before another upward movement.

Key points include:

Bitcoin's 30-day price volatility is at its lowest in two years, indicating a balance between supply and demand.
Liquidity is concentrated around $120K and $113K, suggesting potential for significant price movement.
Historically, low volatility phases often precede major price expansions.

Volatility Compression Analysis

Analyst Axel Adler notes that Bitcoin's 30-day price range is tightly compressed. This indicates a low volatility period with liquidity focused near local highs and lows. A break above the $120K–$124K zone may lead to further gains, while a drop below $113K could signal a deeper correction.

Current Price Dynamics

As of now, Bitcoin is trading at $121,596, down 0.14% after briefly surpassing $123,217. The $124K level remains a critical resistance point, having obstructed upward movements multiple times. Key moving averages provide support, with the 50 SMA at $116,948.

A confirmed breakout above $124K may attract buying interest, whereas failure to reclaim $123K could prompt selling pressure, targeting initial support at $120K and further support around $117K–$118K.