Bitcoin has dipped to $122,000, marking a 3% pullback from recent highs, while major altcoins like XRP and ADA experienced even greater declines. Analysts warn that the current crypto rally appears overheated, with strong BTC inflows and derivatives activity suggesting a potential short-term market shakeout. The pullback follows a significant surge in Bitcoin prices, raising concerns about sustainability and market stability.

Bitcoin reached $111,400, approaching its record high of $112,000 amid a broader crypto rally, with Ethereum also seeing a notable 6% increase. Analysts suggest that declining volatility and a quiet market setup could indicate a bullish trend ahead for Bitcoin and Ethereum. Liquidations of leveraged short positions also contributed to the price movements in the crypto market.