Bitcoin Retreats from Record High as Traders Take Profits

Bitcoin pulled back from its record high of $123,140 on Tuesday, retreating to approximately $118,500 as traders took profits following the cryptocurrency's latest surge above the $120,000 threshold.

The digital asset's ascent began after it successfully cleared the $116,500 resistance zone, gaining momentum as it pushed through both $118,000 and $120,000 levels. Bulls drove the cryptocurrency above the $122,000 resistance zone before establishing the new peak at $123,140.

However, the rally encountered resistance as the price moved below the 23.6% Fibonacci retracement level of the upward move from the $108,636 swing low to the $123,140 high. The cryptocurrency also broke below a bullish trend line with support at $119,800 on the hourly chart of the BTC/USD pair.

Technical indicators are showing mixed signals as the cryptocurrency consolidates. The hourly MACD is losing pace within the bullish zone, suggesting weakening upward momentum. Meanwhile, the Relative Strength Index (RSI) for BTC/USD has fallen below the 50 level, indicating potential bearish divergence.