Key TakeawaysBitcoin price hovers around $122K after hitting a new ATH above $126K earlier this weekGlassnode analysis strong ETF inflows and renewed mid-tier accumulation but warns of short-term riskKey support levels identified at $117K and $114K amid signs of consolidation Bitcoin Price Pulls Back After New ATHBitcoin briefly hit a new all-time high above $126,100 on Monday before sliding over 4.2% to trade around $122,000 on Thursday. This move came amid increased short-term volatility and rising activity in futures and ETF markets.Despite the correction, U.S.-listed spot Bitcoin ETFs recorded more than $2.5 billion in inflows over the week, including one of their highest daily intake figures to date, according to CoinGlass. These inflows reflect ongoing institutional appetite for digital assets. Macro Environment and Market ContextThe price action comes as Bitcoin enters a price discovery phase, driven by strong ETF demand and historical cycle expectations. However, traders have flagged the risks associated with rising leverage and crowded long positions in the derivatives market.Glassnode noted that while most BTC holders are in profit, the market could face short-term fragility due to the combination of high unrealized gains and increased speculative activity.Meanwhile, the broader crypto market remains relatively stable, with major altcoins tracking BTC's movements amid muted volatility. On-Chain Insights and Technical IndicatorsGlassnode reports that 97% of circulating BTC is now in profit, underscoring the strength of the recent rally. Yet analysts caution that elevated profit levels often precede market consolidation rather than immediate continuation.Technical indicators back this cautious optimism:All Moving Averages (EMA and SMA from 10 to 200 periods) are showing positive signalsMost other oscillators, including RSI, CCI, and ADX, remain neutral, suggesting a market in wait-and-see mode.Source: TradingViewSource; TradingViewWhat’s Next for BTC: Key Support Levels and OutlookAnalysts and trading models are pointing to $117,000 as a key structural support zone, backed by Glassnode’s Cost Basis Distribution Heatmap. Roughly 190,000 BTC were last acquired at this level, indicating potential buying pressure if prices dip further.Further downside support lies near $114,000, which aligns with the 50-day simple moving average, offering an additional cushion should momentum wane.Veteran trader Peter Brandt noted that the current price structure aligns with Bitcoin’s previous four-year cycles. While he sees a 50/50 chance of a peak, he warned that “trend violations can lead to dramatic moves,” hinting at potential volatility ahead.
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