cryptopotato.com
Bitcoin has recently approached its all-time high of $109K, demonstrating strong bullish momentum. However, the rally has temporarily paused, suggesting a potential consolidation or corrective phase before the next breakout attempt.
Technical Analysis
The Daily Chart
Bitcoin extended its sharp upward move after breaking above the key psychological resistance at $100K, climbing toward its all-time high of $109K. Yet, the bullish momentum has stalled at this critical region, with the price entering a brief consolidation. This resistance zone likely contains a substantial supply, as traders begin to realize profits and anticipate a corrective phase.
Given the current market structure, a short-term retracement or sideways consolidation toward the $100K support level appears likely before any attempt at a decisive breakout above $109K to establish a new $ATH.
The 4-Hour Chart
On the 4-hour timeframe, Bitcoin’s weakness around the $109K resistance becomes more apparent. After testing this level, the price has gradually lost momentum, forming a consolidation pattern that resembles a potential double-top.
Moreover, a clear bearish divergence between the price and the RSI suggests that sellers are gaining traction as bullish momentum fades. These signals point toward a likely short-term correction or consolidation around the $100K zone before the market regains strength for another breakout attempt.
On-chain Analysis
By ShayanMarkets
While Bitcoin neared its all-time high around $109K, profit-taking activity is expected as traders look to secure gains. Consequently, BTC’s extended consolidation near $ATH levels can largely be attributed to significant profit realization by market participants.
However, the recent behavior of long-term holders (LTHs), investors who have held their assets for over 150 days, tells a different story, as reflected in the LTH SOPR (Spent Output Profit Ratio) metric.
It has been trending downward even as the price approached the $109K range. This decline suggests that long-term holders have not yet engaged in notable profit-taking. Instead, they appear to be accumulating, signaling confidence in higher price targets and anticipating new all-time highs.
Therefore, the current consolidation phase seems to be primarily driven by short-term holders and retail traders. Based on this behavior, Bitcoin is likely to resume its bullish trend following this pause, potentially leading to a fresh impulsive rally and new all-time highs in the mid-term.