Bitcoin and the wider cryptocurrency market have experienced significant price swings due to the release of better-than-expected economic data, which has sparked fears of inflation and led to widespread corrections. However, there are indicators that Bitcoin may be following a historical cycle that could signal the beginning of a new bullish phase, potentially driving its price to $125,000 in the coming months. Analysis shows similarities between Bitcoin's current consolidation phase and past cycle movements. Despite this bullish setup, there are concerns about ETF outflows and declining retail participation. Bitcoin ETFs have seen significant outflows, and the number of non-empty Bitcoin wallets has decreased, indicating that small traders are exiting the market out of fear. Additionally, macroeconomic concerns, such as higher-than-expected Producer Price Index figures, continue to impact Bitcoin's short-term price action. Traders are monitoring key resistance and support levels to gauge Bitcoin's trajectory. While there is hope for renewed bullish momentum if crucial resistance levels are broken, weak support levels could lead to increased volatility and a sharper correction. Traders are cautious as they balance bullish expectations with macroeconomic uncertainties.



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