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- Bitcoin’s pullback fits a healthy bull market correction.
- On-chain metrics and U.S. demand support further upside.
- Short liquidations add momentum toward $123K–$150K.
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Bitcoin [BTC] is currently trading near $110,000, roughly 12.8% below its all-time high, but this move still falls within the typical correction range of –10% to –18% seen in bull markets. Rather than a sign of capitulation, analysts suggest this decline represents a healthy consolidation phase that could pave the way for higher prices.
Ascending Channel Keeps $150K Target in Play
On the daily chart, Bitcoin is holding the lower edge of its ascending channel after bouncing from the $107K support zone. A move back toward $123K appears likely, with Fibonacci projections pointing to $150K as a potential upside target.
Momentum indicators add weight to the bullish case. The RSI reading of 42.8 suggests weak but improving buying pressure, giving bulls room to accelerate if support levels hold. Still, a breakdown below channel support could expose the market to $93K downside risk.
On-Chain Metrics Support a Healthier Market
Bitcoin’s Network Value to Transaction (NVT) ratio dropped 17.35% to 32.6, signaling that valuation is more aligned with transaction activity. Historically, falling NVT readings have coincided with more sustainable phases of growth, reducing fears of overvaluation.
At the same time, the Coinbase Premium Gap surged 128% to 2.56, underscoring strong U.S. buying demand. Institutional accumulation has often preceded major rallies, making this an encouraging sign for bulls.
Short Liquidations Fuel Upside Momentum
Data from CoinGlass shows $13.37 million in short liquidations compared to just $379K in longs, with most losses hitting Bybit, Binance, and Hyperliquid. Short squeezes often act as fuel for rallies, forcing bearish traders to buy back into the market.
Also Read: Bitcoin to $1M: Will It Be a Slow Grind or an Explosive “Omega Candle”?
If this imbalance persists, Bitcoin could gain short-term momentum. However, a sudden rejection could flip the script, putting overleveraged longs at risk of liquidation.
The combination of technical structure, on-chain health, strong U.S. demand, and short squeezes suggests that Bitcoin’s latest decline is a consolidation phase, not a breakdown. While risks remain if support levels falter, the path toward $123K and potentially $150K remains firmly open.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
