Bitcoin recently surpassed its previous all-time high of $109K, reaching a fresh peak of $112K earlier this week. While the price is showing slight bullish momentum, it appears to be stabilizing, indicating that a period of consolidation at these elevated levels could be on the horizon.
Daily Chart Insights
Bitcoin has decisively broken through its prior all-time high of $109K, establishing a new record just above $112K. This surge reflects a strong appetite for the asset and continues to support the bullish sentiment fueling this current market cycle.
Nevertheless, the upward momentum seems to be cooling, with Bitcoin pulling back slightly toward the $109K level, which now acts as a key support region. If buying interest picks up at this level, it could pave the way for Bitcoin to rally again, potentially targeting $115K and higher.
However, should selling pressure increase and Bitcoin fails to maintain support at the $109K mark, the possibility of a more significant correction looms. In this case, we could see a move toward the critical $100K level, with the breakout potentially being categorized as a false rally, undermining investor confidence and introducing volatility in the near term.
4-Hour Chart Analysis
Zooming into the 4-hour chart, Bitcoin remains in a bullish structure, maintaining a sequence of higher highs and higher lows. The price has been adhering to an ascending trendline, which now serves as a vital support level for the market.
Currently, Bitcoin is pulling back towards this trendline and the recently broken $109K resistance zone. The interaction at this confluence point will be pivotal in determining the next direction. If the price holds this level, there is a strong likelihood of a continued rally towards the $115K resistance zone.
On the other hand, if Bitcoin fails to maintain its support and breaks below the trendline, this would signal weakness in the short term, possibly leading to a correction toward the $100K level.
On-Chain Perspective
Despite Bitcoin’s recent price surge to $112K, short-term traders have begun taking profits, as is typical in such rallies. However, on-chain metrics paint a different picture, particularly regarding long-term holders, or those who have held Bitcoin for over 150 days.
The LTH-SOPR has remained relatively subdued during this rally, especially when compared to the spike observed during Bitcoin’s previous ascent to $73K in late 2024. Even though Bitcoin is now priced significantly higher, long-term holders have shown little to no signs of offloading their positions. This suggests that many long-term holders are continuing to accumulate, indicating confidence in Bitcoin’s future price potential.
This contrast in behavior between short-term traders and long-term holders suggests that the current period of consolidation is largely driven by short-term traders, rather than widespread market distribution. If long-term holders continue to hold firm, Bitcoin is well-positioned to resume its upward momentum after this brief consolidation, with the potential to reach new all-time highs in the near future.
