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Bitcoin reached a new all-time high of $90,243 after a week of sustained bullish momentum. After days of euphoria and quick gains, the price is now entering a consolidation phase, providing a much-needed pause for the market.
Key data from CryptoQuant suggests moderate selling pressure is emerging, which could indicate a short pullback or stability below the $90,000 mark.
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This week will be pivotal in determining Bitcoin’s next steps as traders and investors watch whether Bitcoin will settle near the $90,000 supply level or pull back to test support at around $80,000. With strong market fundamentals and continued bullish investor interest, the potential for another rally remains high.
However, a short consolidation period could provide a healthier foundation for BTC’s long-term rise. All eyes will be on whether Bitcoin is able to maintain its current levels or whether this cooling off phase will allow buyers to re-enter areas of low demand, paving the way for the next major price move.
Bitcoin selling pressure is still far from peak levels
Bitcoin has reached a local peak after hitting a new all-time high, signaling a pause in its recent rise. Analysts and investors are watching closely, as BTC has a history of making strong moves once it begins an upward trend. Despite this bullish momentum, many are cautious, anticipating that Bitcoin will need time to consolidate before rising.
According to key data from CryptoQuant analyst Axel AdlerThe market is now facing moderate selling pressure. Adler’s analysis points to a possible consolidation phase, where short-term holders take profits. It specifically examines short-term holder realized P&L data, which reveal that current selling pressure is relatively moderate compared to historical extreme selling periods.
In Adler’s view, this moderate pressure suggests that BTC’s recent rally may not be over. He highlights the sell-off clusters seen at previous peaks, which are marked as clusters #1, #2, and #3 on his chart, showing levels of selling pressure much higher than what we see today. This data suggests that although some profit taking is underway, it is nowhere near the intense levels seen at previous peaks.
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As Bitcoin approaches consolidation, this weak selling pressure could lay the foundation for a more stable rally. Investors are looking to this moment to gauge whether Bitcoin will gather strength for the next move higher or continue to cool off, forming a solid base around current levels before another potential breakout.
BTC Tests New Supply Levels (Again)
Bitcoin has officially entered its long-awaited price discovery phase, recently hitting a new all-time high of $90,243. Currently trading at around $87,500, BTC has seen days of intense buying pressure and record highs. However, the market may see a period of consolidation below the $90,000 threshold as traders evaluate new demand levels, which will likely be around $80,000.
The coming days will be crucial in determining BTC’s short-term trajectory. If Bitcoin stabilizes above $85,000, this would indicate resilience and likely encourage a push towards higher supply areas as bullish momentum builds. However, if BTC loses this level, a bounce could occur from the low demand near $82,000, allowing for a more stable footing before the next rally attempt.
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Analysts see this consolidation phase as necessary after BTC’s rapid rise, as it allows the market to create support. Staying within the current range would indicate strength, indicating that Bitcoin is well positioned for further gains. Investors are now watching closely, gauging whether BTC will lock in its recent gains or briefly reset before aiming for new highs.
Featured image by Dall-E, chart from TradingView