Key takeaways

Bitcoin hit a new all-time high of $123K, breaking out of key resistance zones and showing strong momentum. However, with rising profit-taking signals and overbought indicators, a short-term pullback or pause now seems likely.

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Bitcoin [BTC] hit an ATH of $123,000 after weeks of steady gains. But signs are starting to show that the rally could slow down, with a short pause or pullback likely before the next big move.

So, where do we go from here?

Bitcoin clears supply zones, regains momentum

Bitcoin’s break has not only marked a new ATH, but also pushed the market decisively out of a heavy consolidation range between $100k and $110k.

On-chain data from Glassnode’s cost basis distribution heatmap shows that the $93k-$97k and $104k-$110k zones acted as dense accumulation pockets during the recent sideways movement.

Breaking above these levels means that a large share of BTC supply is now sitting in profit, laying a potentially strong base for future pullbacks.

However, with prices now above the 95th percentile of cost basis levels – usually a region of profit-taking – Bitcoin may soon face the typical cooling-off that follows aggressive rallies.

Short-term top?

Bitcoin’s rally to $123K coincided with a surge in the 7-day aggregated open interest delta, showing a flood of leveraged positions. But that trend is now reversing – a classic marker of a local top.

Alphractal CEO Joao Wedson notes this may bring in a short-term consolidation period, even as altcoins gain momentum.

While the medium-term bullish outlook remains intact, the near-term play seems to be about managing risk and spotting undervalued altcoin opportunities.

Bitcoin: Momentum stays strong, but overheating warnings are up!

Bitcoin’s daily chart showed bullish momentum, but caution may be warranted in the short term. The RSI crossed into overbought territory at 72.79, at press time, suggesting that BTC may be nearing exhaustion after its recent surge.

At the same time, the MACD indicator showed strong upward momentum, with a widening gap between the MACD and signal lines; a sign of trend continuation.

While the broader trend remains positive, a temporary pullback or sideways phase is increasingly likely as traders digest recent gains.

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