Bitcoin Faces Volatility After New High, US Demand Signals Bullish Trend

Bitcoin Market Update:

Bitcoin experienced a swift correction, dropping below $125,000 after reaching an all-time high of $126,200. The price retraced over 4% to approximately $120,000.
This correction resulted in the liquidation of millions in leveraged positions as traders expected further gains.
Despite the pullback, on-chain data shows significant accumulation by US investors, particularly through regulated platforms and ETFs.
The Coinbase Premium Gap surged, indicating strong demand from US investors. Historically, such increases have preceded major market expansions.
Bitcoin is stabilizing around $122,500, with support just above $120,000, which previously acted as resistance.
The 8-day and 21-day moving averages are trending upward, suggesting continued bullish momentum.
If Bitcoin holds above the $120,000–$121,000 range, it may attract renewed buying pressure to potentially break above $125,000.
A failure to maintain current levels could lead to a retest of the $117,500 area, still within a healthy correction range.

The overall trend remains bullish, supported by institutional demand and strong inflows into Coinbase. A decisive move above $125,000 could initiate a new phase of price discovery.