Bitcoin is pulling back after hitting its all-time high. This move is widely viewed as a healthy correction, with the $113,000 support level now in sharp focus. Although it hasn’t been tested yet, this area is quickly becoming the market’s main reference point for the next big leg.
Today, Bitcoin is hovering around $117,450, after recently peaking at $123,091 and dropping to an intraday low of $115,930. This pullback is driven by three main reasons. Many investors seized the opportunity to take profits, pushing the price roughly 4.6% lower. Meanwhile, traders opted for caution, choosing to let the market consolidate before making new attempts at higher levels. On-chain data also shows larger flows to exchanges, signaling that whales and institutions are partially cashing out and repositioning portfolios.
From a technical standpoint, the $113,000 zone stands out for two key reasons. It lines up with the base of an inverse head and shoulders pattern, which often suggests a strong reversal point. It also overlaps with the CME gap between $114,300 and $115,600. Historically, such futures gaps tend to get filled, increasing the likelihood that Bitcoin could dip into this area before bouncing back.
If Bitcoin reaches this range and attracts strong buying interest, analysts see upside targets stretching from $130,000 to $150,000, with some models even pointing toward $160,000 in extended cycles. On the other hand, a drop below $110,530 might open the door to a deeper correction, potentially testing levels around $108,000.
Overall, the combination of profit-taking and carefully managed selling by large players hasn’t changed the broader outlook. Institutional flows remain positive, with about $3.7 billion moving into crypto funds over the past week, helping to keep the long-term bias constructive. The market now waits to see if the $113,000 support will be reached and act as a launchpad for Bitcoin’s next major rally.
