The price of Bitcoin experienced significant Fluctuation on Friday. In the morning, Bitcoin reached a historical high of $124,500, showcasing a strong pump momentum. However, in the evening, the price of Bitcoin saw a substantial pullback due to the US Producer Price Index ( PPI ) data exceeding expectations and the market's weakened expectations for a Fed rate cut.

A bearish engulfing pattern has formed on the daily chart, with prices dropping to around $117,000, returning to the previous starting point. This price movement has attracted the attention of market participants regarding the short-term direction.

In the short term, the current price level may welcome a pullback and corrective consolidation. Investors should closely monitor the resistance levels in the range of $120,000 to $121,000, while also paying attention to the support levels in the range of $116,000 to $116,500. These key price levels may affect the short-term trend of Bitcoin.

Despite the market experiencing a pullback, many analysts believe this could be part of a healthy adjustment. They point out that a certain degree of pullback is normal after reaching new highs, helping the market to digest previous gains and build momentum for the next round of pump.

However, investors still need to be cautious and closely monitor the global macroeconomic situation, changes in regulatory policies, and the movements of institutional investors, as these factors can significantly impact Bitcoin prices. In such a fluctuating market, risk management and patiently waiting for opportunities are equally important.