Bitcoin's price recently experienced a significant drop of 13% after reaching an all-time high of $108,250 earlier this week, signaling a local correction.

Historically, Bitcoin has shown a tendency to undergo sharp pullbacks after hitting major resistance levels, with notable corrections of 84% in December 2017 and 55% in April 2021.

Despite this recent downturn, Bitcoin's fundamentals remain robust, highlighted by a decrease in mining output and a reduction in Bitcoin held on exchanges, which could indicate a potential rebound.

In the midst of market fluctuations, large holders, known as whales, are actively accumulating more Bitcoin, with MicroStrategy notably increasing its holdings to over 439,000 BTC.

The growing interest in Bitcoin is further evidenced by spot Bitcoin ETFs, which have attracted over $34 billion in assets, particularly from institutional investors.

As the U.S. public debt surpasses $36.4 trillion, the idea of establishing a strategic Bitcoin reserve is gaining traction, with suggestions from prominent figures like Donald Trump.

On a technical level, Bitcoin's price has formed bullish patterns, including a cup-and-handle formation, suggesting a target price of $122,000 based on the depth of the cup.

Currently, Bitcoin's MVRV-Z score is lower than during previous historical corrections, indicating a potential for price recovery as panic selling begins to subside.