Was $124K Bitcoin’s Peak or Just the Beginning of the Next Bull Run?

Bitcoin’s recent retreat from $124K has left many investors wondering if the top is in or if this is just another shakeout in a bullish market cycle.

While some panic at the dip, seasoned traders see opportunity. The market is currently flushing out weaker hands, transferring BTC to holders with lower cost bases and stronger conviction.

As leveraged positions get liquidated and support levels hold, the foundation for the next potential rally may be forming.

Understanding the market’s technical and on-chain signals is key to assessing Bitcoin’s near-term trajectory.

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Key Takeaways

1. Bitcoin dips from $124K, shaking out newer investors while long-term holders stay strong.

2. Key on-chain indicators suggest the market is not overheated, leaving room for growth.

3. Liquidations and price corrections may set the stage for a potential rally toward $150K.

Bitcoin Pullback Clears Weak Hands but Holds Key Support

Bitcoin’s dip below $111K recently triggered about $70 million in liquidations, showing how leveraged traders can amplify volatility. However, this shakeout is not a sign of a market top but rather a healthy structural reset.

On-chain data reveals that short-term holders who bought BTC in the past month are now seeing small losses around 3.5% and are selling their positions.

Meanwhile, investors holding for one to six months remain profitable, with unrealized gains averaging 4.5%.

This transfer of BTC from newer to more experienced holders strengthens the market’s base, providing resilience against deeper drawdowns.

Technical support remains solid near the 20-week exponential moving average (EMA) around $108K.

Historically, this level has acted as a reliable dynamic support during bull market pullbacks. Should Bitcoin recover from this level, the path toward previous highs of $125K or even higher toward $150K remains viable.

Read Also: Peter Schiff Warns Bitcoin (BTC) Will Fall to $75,000 in the Near Future

Key Indicators Suggest Bitcoin Is Not at a Cycle Top

Many investors fear that $124K represented the peak for Bitcoin in 2025, but leading analysts highlight that key peak indicators have not signaled overheating.

The Puell Multiple, which measures miner revenue relative to historical norms, sits at 1.39, well below the 2.2 levels seen at prior cycle tops.

Similarly, the MVRV Z-Score, comparing price to actual investor acquisition costs, remains neutral. These readings suggest that while BTC has seen rapid gains, it has not entered bubble territory.

Additionally, open interest on major exchanges has reset after recent liquidations, making the market structurally healthier.

Without excessive leverage pushing prices artificially higher, Bitcoin may have room to rise organically as demand continues to grow.

Analysts argue that a return above $117K-$118K could trigger renewed buying interest and short-covering, further fueling upward momentum.

Read Also: VanEck Stands Firm on $180K Bitcoin Price Target as CME Basis Rates Hit Highs

Potential Scenarios for Bitcoin’s Next Move

Looking at Bitcoin’s weekly chart, the current pullback appears more like a correction than a top. Drawdowns of 20%-30% have been common during past bull cycles, with BTC often rebounding strongly afterward.

If Bitcoin maintains support at the 20-week EMA, a recovery toward $125K is plausible. Beyond that, a rally to $150K by year-end remains within reach.

Conversely, a breakdown below the 20-week EMA could open the door for a deeper correction, possibly toward the 50-week EMA near $95K, historically marking local lows.

The broader market context also supports potential upside. Institutional accumulation, ETF developments, and growing adoption all contribute to sustained demand for Bitcoin. 

As weak hands exit, the market consolidates, setting the stage for the next bull run.

Read Also: Bitcoin 401(k)s Thrill Investors but Carry Serious Risks

Conclusion

Bitcoin’s pullback from $124K is shaking out short-term traders, but long-term holders remain confident. On-chain metrics indicate the market has not peaked, and key support levels are holding firm.

Liquidations have removed overleveraged buyers, creating a healthier market structure and a foundation for potential gains.

Technical analysis points to a recovery toward $125K, with the possibility of testing $150K in the months ahead.

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By using reliable trading platforms, investors can participate confidently in Bitcoin’s ongoing growth while protecting their assets.

FAQ

Has Bitcoin already peaked at $124K?

No, most analysts agree that $124K is a temporary high, not the cycle top. Key indicators suggest more upside potential exists.

What is the 20-week EMA and why does it matter?

The 20-week EMA is a dynamic support level that has historically protected Bitcoin during pullbacks in bull markets. It helps traders identify potential buy zones.

How do liquidations affect Bitcoin’s price?

Liquidations occur when leveraged positions are forcibly closed, causing rapid price drops. While painful in the short term, they remove overleveraged buyers and stabilize the market for the next rally.

Can Bitcoin reach $150K this year?

Based on technical analysis and market structure, a move toward $150K is possible if Bitcoin maintains support and institutional demand continues.

Where can I trade Bitcoin safely?

Platforms like Bitrue offer a secure environment to buy, sell, and stake Bitcoin with advanced tools for managing risk and tracking market trends.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.