Bitcoin is trading near the $118,000 threshold after a 4.24% retracement from its recent all-time high of $123,091. While representing a moderate correction, this pullback remains shallower than typical retraces observed during historical bull markets, signaling underlying market resilience.
Technical indicators warrant cautious monitoring. The exchange whale ratio – tracking large-scale BTC deposits to exchanges – currently registers at 0.52. Market analysts observe that this ratio climbing above 0.60 has historically signaled increased selling pressure, suggesting potential downward momentum if whale activity intensifies.
Liquidation clusters are forming at $113,200 and $121,800, creating crucial short-term price magnets. With Bitcoin hovering closer to the $121,800 level, traders anticipate heightened volatility near these liquidity zones, which could amplify upward or downward movements depending on price triggers.
Critical price thresholds define near-term scenarios. A sustained breakout above $118,000 could catalyze upward momentum toward the $122,000-$124,000 range. Conversely, failure to consolidate above this ceiling may trigger a retest of the $111,000-$112,000 support region. Despite short-term uncertainty, long-term fundamentals remain solid, with minor corrections aligning with typical bull market behavior.