Bitcoin Tests $123,000, But Analysts Remind of Risks

On the evening of October 3, the leading cryptocurrency rose above $123,000, and Ethereum surpassed the $4,500 mark.

15-minute chart of BTC/USDT on Binance. Source: TradingView.

At the time of writing, digital gold had corrected to $122,800. The asset has gained almost 10% over the week.

Over the past 24 hours, the volume of liquidations on the market reached $554 million, of which $358 million were short positions.

Source: Coinglass.

Other cryptocurrencies in the top 10 by market capitalization reacted cautiously to the flagship's rise. The exception was BNB, which hit a new all-time high.

Source: CoinGecko.

The market continues to be fueled by the positive sentiment surrounding the US government shutdown. The Uptober narrative, stable funding rates, and inflows into exchange-traded funds are fueling momentum. However, some market participants fear a pullback.

Fear of correction

A trader using the pseudonym BitBull claimed that the current rise is the beginning of a Q4 rally.

$BTC Q4 pump has started.

But don't think we will go up-only.

In the next 1-2 weeks, BTC and alts will have a big leverage flush.

This'll force people to sell their coins as they think that Uptober is over.

After that, Bitcoin and alts will rally again and hit new highs. pic.twitter.com/fb11snGZzP

— BitBull (@AkaBull_) October 3, 2025

“But don't think we're only going up. Bitcoin and altcoins will face significant deleveraging in the next one to two weeks,” he warned.

According to the expert, this will cause people to sell their coins, thinking Uptober is over. The market will then rise again to new highs.

A user named Roman wondered how long the leading cryptocurrency could ignore “bearish divergences and lack of momentum on the weekly and monthly charts.”

4-hour RSI chart of the BTC/USDT pair on Binance. Source: TradingView.

He pointed out that the RSI remains in the overbought zone, reinforcing expectations of a cooling in prices on smaller timeframes.

“The volume [of trading] also indicates a lack of strength. It's only a matter of time before these factors play out. Be careful when holding positions,” Roman warned.

As a reminder, CryptoQuant analysts have identified the conditions for Bitcoin to rise to $200,000.