Bitcoin (BTCUSD) is extending its consolidation near the 122,100 threshold after rebounding from Tuesday’s sharp drop of over 2.5% from its 125,000‑126,000 record peak territory, as rising profit‑taking pressure keeps investors cautious.
That said, while short‑term momentum has cooled, institutional demand and the broader “debasement trade” narrative continue to support the broader uptrend heading into October’s seasonally bullish period.
The momentum indicators reflect the market’s current wait‑and‑see mode. The RSI is easing at 61, above the neutral threshold, the stochastics are hovering in the overbought region, and the MACD remains above its red signal line in positive territory.
In the event that the leading cryptocurrency closes below 122,000, it could extend its decline towards the 120,000 round figure. If that crucial support is broken, the correction could deepen toward the 117,500 level, which significantly lies just above the 20‑day simple moving average (SMA).
However, if Bitcoin maintains its upward momentum, it could resume its rally toward record territory, targeting the mid‑August record high of 124,480, followed by this week’s peaks at 125,653 and 126,223.
In short, Bitcoin appears to be entering a short‑term consolidation phase before its next major move, with indicators signaling a slowdown in bullish momentum, but price action holding firm above key levels.