Summary: Bitcoin eyes $122K – But BTC’s price could drop to THIS level first

Bitcoin is currently caught in a tight range, fluctuating between $116,000 and $119,000. All eyes are on a pivotal figure: $122,000, identified as the critical resistance level for a sustained bull run. However, don't expect an immediate surge; analysts predict a potential short-term decline first. This forecasted dip stems from several on-chain indicators signalling waning investor enthusiasm. Spot market activity has seen a dramatic decrease, with total buys plummeting over the past three weeks. Furthermore, the Net Unrealized Profit/Loss (NUPL) indicator has soared, suggesting that a wave of profit-taking could be imminent. This growing accumulation of unrealized gains often precedes a sell-off, which would exert downward pressure on Bitcoin. The 24-hour Liquidation Heatmap points towards a likely descent back to the $116,000 region. Crucially, this very level could also act as a strong demand zone, potentially sparking a reversal. Such a short-term dip might be the necessary "reset" for Bitcoin to gather momentum. Successfully breaching the $122,000 barrier afterward could then unlock a more significant and lasting bull rally. The journey to new highs might just require a temporary detour downwards.