Bitcoin has experienced a temporary pullback after its impressive surge past $114,000, as traders take profits and buying pressure eases. The market is showing signs of caution as liquidity decreases, making the price vulnerable to short-term fluctuations. Looking ahead to the coming week, there are two possible scenarios to consider: a bullish outlook could see BTC price reaching the $118,500–$120,000 range, while a bearish turn may pull it back towards $110,000. The key question now is whether momentum will favor another breakout or a deeper correction.
The recent drop in Bitcoin price can be attributed to the failure to sustain above $115,000, leading to a quick rejection back towards $114,000. This 3% intraday decline was driven by profit-taking as traders cashed in near the milestone level. Exchange inflows of over $420 million in BTC within 24 hours indicate increased selling pressure, while spot trading volumes have dropped by 18%, reducing liquidity. This combination of profit-taking and weakening demand has intensified the pullback, putting pressure on BTC’s momentum in the short term.
In the past 24 hours, spot Bitcoin ETFs have seen net outflows of around $103.8 million, with Fidelity’s FBTC and ARK’s ARKB leading the way in withdrawals. While smaller inflows from IBIT and BTCO have been recorded, they have not been enough to offset the selling pressure. This trend highlights a decrease in institutional interest at a time when leveraged long positions are being unwound. Without strong ETF inflows to absorb supply, Bitcoin’s price action becomes increasingly fragile. Failure to hold key support levels could lead to a deeper correction, while renewed demand would be necessary to restore bullish momentum.
Looking ahead, Bitcoin’s price action is currently hovering around $113,300, facing resistance at $114,800. The CMF indicator shows modest capital inflows, but momentum remains weak. RSI sits at 50.4, indicating neutrality after a rebound from oversold levels. Price action suggests consolidation between $118,600 resistance and $107,200 support. A breakout above $114,800 could lead to a move towards $118,600, while a failure to hold $113,000 may result in a deeper correction towards $110,000–$107,200. Overall, Bitcoin’s price remains range-bound with a cautious sentiment.
Despite the recent pullback, Bitcoin’s price has been following a descending trend, forming lower highs and lows. Once it breaks above the falling resistance, the token could begin a new bullish phase towards $122,000 or higher. As the market continues to evolve, traders will be closely monitoring Bitcoin’s price action for signs of a breakout or further correction.