The cryptocurrency recently peaked at approximately $124,024, fueled by ETF inflows and expectations of monetary easing, but a potential double top near $123,217 suggests the upward momentum is weakening.

Market indicators reveal around $40 billion in ETF inflows and nearly $3.9 billion in stablecoin inflows, highlighting a strategic shift in traders' risk appetite amid volatile conditions.

Despite these short-term bearish signals, Bitcoin's overall trend for the year remains bullish, supported by expectations of a Federal Reserve rate cut and ongoing institutional adoption.

The upcoming Bitcoin halving, which will cut new issuance by half, is expected to enhance Bitcoin’s long-term scarcity and value, even as traders focus on managing immediate volatility.

Large whale movements to exchanges, including Binance, indicate increased caution, with historical patterns suggesting such activity may precede short-term price corrections.

On-chain data shows significant Bitcoin transfers to exchanges, including a notable transaction of 16,800 BTC, which may signal capitulation among large holders.

Bitcoin is currently facing short-term selling pressure, primarily driven by increased inflows into exchanges from large whales and institutional traders, rather than new investments.

This inflow activity coincides with Bitcoin's price dropping to around $118,000 after failing to break key resistance levels, amid rising inflation concerns and comments from Federal Reserve officials that dampened bullish sentiment.