Bitcoin Price Struggles to Hold Above $123,000 as Momentum Fades

Bitcoin’s recent surge appears to be losing steam, with the leading cryptocurrency finding it difficult to sustain momentum above the $123,000 mark. After breaking out of the $113,000–$115,000 consolidation range, BTC/USD climbed to new local highs, but a slowdown in bullish energy has become apparent. Recent daily candles show reduced trading volume and noticeable upper wicks, reflecting market hesitation and potential sentiment shifts among traders.

Technical indicators echo this cooling phase. The Relative Strength Index (RSI) has retreated from overbought levels, indicating that buying pressure is weakening. Meanwhile, the narrowing gap between short- and mid-term moving averages suggests that the recent uptrend may be losing strength. The 20-day Exponential Moving Average (EMA) remains above the 50- and 100-day lines, but the decreasing distance between them signals a potential transition from a sharp rally to a consolidation phase.

Historically, such steep ascents have often preceded periods of sideways accumulation or healthy corrections before the next major price movement. The key support to watch is near $117,000, where the 50-day EMA converges with prior resistance levels. A decisive close below this zone could mark a shift in control back to the bears, potentially pushing BTC toward $114,000 or even $107,000 if selling pressure accelerates.

While Bitcoin’s long-term outlook remains bullish, short-term signals point to a necessary market reset. Unless bulls regain momentum soon, the price could enter a consolidation phase or a corrective pullback. Such pauses, though temporary, often serve as crucial foundations for sustainable long-term growth in the cryptocurrency market.