Daily Chart Overview
Bitcoin has surpassed its previous all-time high of approximately $109,000, reaching a new peak around $112,000. This breakout signals robust buying interest and confirms the prevailing bullish sentiment driving the current cycle.
Despite this positive momentum, recent price movements indicate some slowing of upward pressure. Bitcoin has begun a slight pullback toward the $109,000 level, which now serves as a critical support zone. If buying interest ramps up again at this level, we could see Bitcoin push higher toward $115,000 or beyond.
However, if selling pressure increases and Bitcoin fails to hold the $109,000 support, a deeper correction might be on the horizon. In such a scenario, a retest of the psychological $100,000 level becomes more likely. This could potentially trap traders into a false breakout, causing short-term volatility and shaking investor confidence.
4-Hour Chart Perspective
On the 4-hour chart, Bitcoin remains in a bullish configuration, characterized by higher highs and higher lows. The price continues to respect an ascending trendline, which acts as a key support level.
Following the breakout, Bitcoin is currently retracing toward this trendline and the broken $109,000 resistance. The interaction of these levels will be crucial in determining the next move. If they hold, a rally towards the $115,000 resistance zone appears probable.
Conversely, if Bitcoin drops below this support and trendline, it may signal short-term weakness, potentially leading to a correction down to around $100,000.
On-Chain Insights
According to ShayanMarkets, while Bitcoin has hit a new high at $112,000, some profit-taking from short-term traders is expected as they lock in gains. However, on-chain data tells a different story for long-term holders—investors who have held BTC for over 150 days.
The Long-Term Holder Spent Profit Ratio (LTH-SOPR) has remained relatively subdued during this rally, especially when compared to levels seen during Bitcoin’s peak at $73,000 in late 2024. Despite the higher prices, long-term investors are not showing signs of major profit-taking, suggesting ongoing accumulation and confidence in higher future prices.
This divergence indicates that the current consolidation phase is primarily driven by short-term traders and retail investors, rather than widespread market distribution. If long-term holders maintain their conviction, Bitcoin could resume its upward trajectory after this pause, potentially setting new all-time highs in the medium term.
Disclaimer:
Information provided by CryptoPotato reflects the opinions of the respective writers and does not constitute financial advice. Always conduct your own research before making investment decisions. Use the information at your own risk.