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- Bitcoin hit $124K but pulled back to $121K, reflecting short-term volatility.
- Onchain metrics suggest BTC could rise further, with limited profit-taking by short-term holders.
- Technical indicators warn of a potential short-term correction despite bullish momentum.
Bitcoin (BTC) surged to a fresh all-time high of $124,450 during early Asian trading hours on Thursday, before pulling back to $121,670 at the time of writing. The rally has sparked debate among traders and analysts: is BTC’s climb just beginning, or is it entering a short-term top?
Onchain Data Signals More Upside
Despite the recent correction, multiple onchain metrics indicate Bitcoin has not yet peaked. Data from CryptoQuant shows that funding rates and short-term capital inflows remain low compared to previous bull cycles. The funding rate, an indicator of market overheating, has increased slightly, signaling optimism among traders, yet it remains well below prior peaks.
Meanwhile, the short-term holder (STH) Spent Output Profit Ratio (SOPR) shows only limited profit-taking, with a current value of 1.01%. This suggests that most short-term investors are holding onto gains, unlike previous peaks in March and November 2024 when STHs cashed out more aggressively. CoinGlass’s 30 bull market peak indicators also imply Bitcoin could aim for $187,000 before overheating signals emerge.
Technical Indicators Warn of Possible Pullback
While onchain data hints at further upside, some technical indicators suggest BTC might be forming a near-term top. Analyst Captain Faibik highlighted bearish signals on the daily chart, including the “9th TD sell candle,” a rising wedge, and divergence in the relative strength index (RSI). BTC’s RSI recently reached overbought levels on multiple time frames (70–72), prompting a retracement to $121,000.
$BTC Liquidity has been grabbed at the highs…💰
— Captain Faibik 🐺 (@CryptoFaibik) August 14, 2025
We’ve now printed the 9th TD Sell Candle..📉
Daily RSI is Printing Bearish Divergence,, 📉
Rising Wedge Formation..📉
This combination suggests the top might be in & Bearish Rally could be around the corner.
Don’t get trapped… pic.twitter.com/5tghPpFcBv
These patterns often precede short-term price declines, although they do not guarantee a reversal. BTC’s prior all-time high of $123,000 in July also led to a 6% drawdown to $115,000, demonstrating that temporary pullbacks are common during strong uptrends.
Volatility Remains Key
Bitcoin’s record-breaking surge underscores growing institutional interest and market liquidity, yet short-term volatility remains a factor. While onchain data suggests more gains are possible, traders should watch technical indicators for signs of retracement. As BTC navigates these highs, cautious optimism may be the strategy for investors seeking to balance potential rewards with market risks.
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
Also Read: Bitcoin Hits $124K on Cooler CPI Data as Altcoins Outshine and BTC Dominance Falls
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.
