Bitcoin Dips from $123K High—Here’s Why Bulls Are Still Charging

Bitcoin's brief retreat from its $123K all-time high has traders buzzing—but don't mistake a pullback for a breakdown. Here's why the crypto faithful aren't sweating.

The Dip That Didn't Break

After kissing $123K, BTC shed some gains—classic profit-taking in a market that's still hungry. Liquidity pools are deeper than a Wall Street excuse, and derivatives data shows leveraged longs haven't even flinched.

Institutional FOMO Is Real

BlackRock's ETF inflows just hit their 17th straight green week. Meanwhile, legacy finance analysts still can't decide if crypto is 'digital gold' or a 'speculative asset'—pick a lane, guys.

Technicals Say 'HODL'

The 30-day moving average hasn't even blinked, and miner reserves are stacking, not selling. But sure, call it a 'bubble' while your savings account yields less than a DeFi dust wallet.

Bottom line? This isn't 2021's leverage-fueled mania. The bulls aren't breaking—they're just catching their breath.

Key takeaways

Bitcoin’s brief drop after hitting $123K was driven by short-term profit-taking, but long-term holders and miners are still holding firm. While a short-term dip is likely, the broader market still looks bullish.

After soaring to a new all-time high of $123K, Bitcoin [BTC] has hit a speed bump. A surge in exchange inflows and short-term holders rushing to lock in profits triggered a brief cooldown in price.

But long-term holders and miners are holding steady; hinting that the broader bullish sentiment might be far from over.

Crypto analyst and Coin Bureau founder Nic Puckrin framed the breakout in broader context, saying,

“Bitcoin smashed past the $120,000 mark over the weekend, breaking above a seven-year trendline that has acted as a strong resistance level since 2018. This is an incredibly bullish signal, especially given the environment this is happening in.”

Profit takers make a move as Bitcoin hits $123K

As bitcoin surged to a record high of $123,000, on-chain data from CryptoQuant showed a sharp spike in netflows into centralized exchanges; a decisive wave of profit-taking.

Source: CryptoQuant

The inflow, which exceeded 3,000 BTC, marked the most aggressive MOVE by sellers since at least April, breaking a multi-week streak of dominant outflows.

This abrupt reversal shows that short-term holders and a segment of whales likely viewed the $123K level as a near-term top.

While these movements often precede local corrections, the absence of sustained outflows from long-term holders indicates that the broader bullish structure remains intact.

For now.

Puckrin added,

“The Bitcoin long/short ratio is currently overbalanced in favor of the longs, while 24-hour liquidations are close to $1 billion, so a short-term reversal in the price is almost guaranteed, with liquidations looming at around $118,000.”

Selling pressure eases as miners anticipate further upside

Source: CryptoQuant

While short-term holders moved quickly to take profits, miners appear to be taking a different view. There’s been a notable decline in miner-to-exchange flows, with recent volumes retreating from last week’s brief spike.

Source: CryptoQuant

The Miners’ Position Index has also dropped back into neutral-to-negative territory, so miners are not under immediate financial pressure to sell. This restraint points to confidence in Bitcoin’s continued upside.

Given their historical accuracy in timing exits, miners’ hesitation to offload coins may be a key signal that the current bull phase still has room to run.

Bitcoin’s temporary exhaustion

Bitcoin’s drop to $116.8K from the ATH shows early signs of a short-term correction. The daily RSI has slipped from near-overbought territory, now hovering around 64.8; indicating fading bullish momentum.

Source: TradingView

The MACD still showed a positive crossover, but its upward curve was flattening, suggesting weakening momentum unless fresh buying steps in.

The large red candle on the 15th of July confirms heightened sell pressure at the top.

While the longer-term trend remains intact, the current setup points to a cooling-off phase, with a possible retest of support levels before bulls attempt to reclaim control.

Puckrin also highlighted how this rally looks different from past peaks.

“Unlike previous all-time highs, future funding rates are still at normal levels, meaning the risk of cascading liquidations is low.”

He added,

“But, most importantly, retail buyers are nowhere to be seen yet. This rally is still driven by institutional capital, while the typical signs of retail involvement – soaring search traffic and crypto app rankings – are absent.”