Bitcoin is trading above key demand levels but is still facing resistance in breaking into uncharted territory. After setting a new all-time high at $109,300 on Monday, the price has struggled to push higher, leaving traders and investors unsure of its next move. Despite the current market hesitation, BTC remains solid above crucial support, indicating further upside.
Crypto expert Axel Adler provided key insights, suggesting that BTC may be at an attractive level from an investment perspective. Drawing on historical data, Adler highlights that the current Bitcoin price is in line with patterns seen during previous bull cycles, where strong support near highs often precedes large rallies. This has fueled optimism among long-term investors who view the current consolidation as a potential buying opportunity.
However, BTC’s inability to decisively break above ATH has left the market in suspense, as traders wait for confirmation of the next trend. A sustained push beyond $109,300 could trigger a new bullish phase and push BTC into price discovery, while failure to hold key demand levels could lead to further consolidation or even a short-term correction. The coming days will be pivotal for Bitcoin as the market searches for clarity on its next direction.
Bitcoin is entering a major phase
Bitcoin is entering a critical phase as it approaches the final stage of its 4-year bull cycle, a period historically characterized by heightened speculation and significant price rises. With investors and analysts anticipating a big move in the coming months, many have begun setting ambitious price targets for the cryptocurrency. This phase is characterized by increased interest, market momentum, and focus on BETC’s ability to address macroeconomic challenges.
Renowned crypto analyst Axel Adler highlighted Bitcoin’s potential using the Cumulative Value Destroyed Days (CVDD) model. According to Adler, the CVDD model suggests a conservative price target of $153.2K, based on a 5x multiple. This metric, derived from historical data, indicates Bitcoin’s current price levels as attractive to long-term investors. The CVDD model has historically been a reliable indicator, providing insight into Bitcoin’s valuation relative to its past performance.
However, Adler cautions that this and similar models do not represent external economic and political risks. Events such as the Covid pandemic or China’s mining ban have previously disrupted Bitcoin’s trajectory, demonstrating the unpredictable nature of the market. Although Bitcoin has historically shown resilience and a remarkable ability to recover from setbacks, it is crucial to remember that past performance does not guarantee future results.
As Bitcoin continues to consolidate near its all-time highs, the market’s attention remains on whether it can maintain its upward momentum. If the CVDD model’s predictions are consistent with actual performance, the coming months could see Bitcoin reach unprecedented levels. However, investors should remain aware of external risks and market volatility while navigating this pivotal stage in the Bitcoin cycle.
BTC Price Compling Long Term Strength Action Signals
Bitcoin saw high volatility after the opening day on Monday, displaying uncertain but active market sentiment. After marking a new all-time high at $109,300, BTC has seen a rapid pullback, testing the crucial $100,000 level within hours. This sharp volatility highlights the ongoing tug of war between bulls and bears as the market seeks clearer direction.
On a longer-term time frame, Bitcoin remains bullish, setting new steady lows since late November 2024. This consistent uptrend underscores the strength of BTC’s bullish momentum, even amidst increased volatility and uncertainty in the market. Investors remain optimistic about Bitcoin’s potential for further gains, supported by its strong performance over the past months.
However, for BTC to confirm its bullish phase and signal a continuation of the rally, it must break decisively above its all-time high and sustain the breakout. A successful move above $109,300 will likely attract new buying interest and confirm confidence among market participants, paving the way for BTC to enter price discovery and set new records.
Failure to recover ATH could lead to further consolidation around key levels, keeping the market intact. The coming days will be crucial as BTC navigates this pivotal phase in its current bull cycle.
Featured image by Dall-E, chart from TradingView