Follow another rejection at the $120,000 level, Bitcoin (BTC) is beginning to show signs of cooling off – potentially setting the stage for another rally in the second half of the year. Some analysts predict BTC could reach $150,000 as its next high.
Bitcoin’s current overheating phase is short-lived
Crypto Dan’s CryptoQuant Quicktake article states that Bitcoin has entered a cooling off phase after experiencing a brief overheating period. Warning signs can be seen in BTC that has been held from one day up to one week.
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Crypto Dan posted the graph below showing this group of short-term holders is now recording lower and smaller spikes. It suggests overheated conditions in the market are beginning to ease.
Analysts compared current conditions to overheating periods between January-April and March-October, 2024. Both times, overheating was intense and lasted longer (red boxes).
Contrastingly, current overheating situations (shown by the yellow box), are of shorter duration and lesser extent than the previous two cases. Analyst added:
A milder, shorter short-term correction may be expected, too, because the recent increase in prices was so modest. It’s still important to be patient, and to look ahead to an uptrend that could occur in the second half 2025.
BTC has seen its price increase during the recent rally. The digital asset went from about $108,000 on 1 July to a brand new record high of $123,128 by 13 July, before stabilizing at around $117.500.
BTC preparing for its next big move?
As Bitcoin consolidates, several analysts suggest the top cryptocurrency may be gearing up for a major move – likely to the upside. Titan of Crypto, a veteran crypto analyst noted that Bitcoin was currently “in a pressure cooker.”
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Titan of Crypto posted the chart below, which shows that Bollinger Bands have tightened while volatility has shrunk. At the same time, the Relative Strength Index (RSI) is compressing – often a precursor to a breakout.
Ali Martinez is a fellow analyst who believes that BTC will reach its next peak at $149,679 using the Cumulative Days Destroyed (CVD). The CVD metric is a measure of whether sellers or buyers are dominating the trading volume in time.
Some warning signs remain. Recent Bitcoin exchange reserves have reached an all-time high. one-month high, suggesting that some holders may be preparing to sell – potentially putting pressure on the current bullish trend. BTC was trading at $117.546, which is down 0.4% over the last 24 hour.
Charts from TradingView.com, X and CryptoQuant.
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Source: www.newsbtc.com
