Bitcoin Corrects to $122.5K After $126K High Amid Bullish Momentum

• Bitcoin experienced a slight pullback after reaching a historic $126,200.
• Analysts maintain a bullish outlook, highlighting strong investor sentiment and key levels.

On October 7, 2025 (UTC), Cointelegraph reported Bitcoin fell to $122,500 following its all-time high of $126,200, with analysts highlighting bullish price consolidation and key levels. The decline marked a modest retracement amidst a broader upward trend.

Market analysts noted that Bitcoin continues to trade between $124,000 and $125,000 following the pullback. Key technical levels include significant resistance near $135,000 and support around $120,000, with immediate support identified at $123,300.

Despite the correction, analysts remain optimistic. Michael van de Poppe of MN Capital stated that Bitcoin is likely in a consolidation phase. He suggested that this phase could precede a breakout toward $150,000, as the market shows no signs of losing its bullish momentum.

On-chain data highlights strong investor confidence driving Bitcoin’s current price behavior. An increase in active wallet addresses and substantial inflows into Bitcoin ETFs point to sustained buying pressure. Additionally, large wallet holders, or "whales," have increased their holdings, reinforcing the positive market sentiment.

Trading volume has risen significantly, and Bitcoin’s Relative Strength Index (RSI) indicates continued upward momentum. These signals align with analysts' views that the market remains in a healthy consolidation state rather than overheating.

Macroeconomic factors are also contributing to Bitcoin’s bullish trend. Institutional investments and a favorable regulatory environment have bolstered confidence, while concerns surrounding the U.S. government shutdown have elevated demand for decentralized and secure safe-haven assets.

As of October 7, 2025, 16:09 UTC, Bitcoin (BTC) is trading at $121,703.39, with a 2.576% decline in 24-hour trading volume, according to CoinMarketCap.