Highlights
- Bitcoin achieves its highest weekly close at $123,400.
- Onchain and futures indicators suggest strong bullish control above $122,000.
- Short-term predictions show a divide between continued upward movement or a fallback.
Record Weekly Close
Bitcoin has reached an unprecedented weekly close of $123,500 on Sunday, marking its advancement into a new phase of price evaluations. With consolidation near its all-time high (ATH) at $125,800, critical onchain and derivative indicators signal a resilient bullish trend.
Bitcoin one-week chart. Source: Cointelegraph/TradingView
Bulls Advancing Bitcoin’s Momentum
Bitcoin’s structural momentum is clearly bullish. Researcher Axel Adler Jr. emphasized that Bitcoin’s value has been consistently touching the upper limit of the 21-day Donchian channel at $125,200. The momentum indicator at +0.73 reveals a dominance of buyers amidst controlled pullbacks. The struggle surrounding the $125,000 ATH will be pivotal in determining if the market will continue its upward trajectory or ease for consolidation.
Bitcoin Structure and Donchain analysis. Source: Axel Adler Jr.
Futures Flow Index and Investor Sentiment
The Bitcoin futures flow index stands at 96%, indicating that the price is significantly over its 30-day fair estimate at $117,500, a sign of bullish sentiment typically followed by a stabilization period.
Bitcoin futures flow index. Source: Axel Adler Jr.
The Profit/Loss Block score remains at a maximum of +3, suggesting the majority of UTXOs are in profit, which supports a strong appetite for risk and a continuous inclination towards buying on dips.
Short-term Perspectives: Momentum or Mean Reversion?
The short-term forecast presents two potential scenarios following Bitcoin’s landmark weekly close:
- Momentum-driven extension: A scenario where Bitcoin settles within a narrow band of $122,000 to $124,000, establishing a high-timeframe base, leading to a gradual bullish trend.
Bitcoin short-term outlook scenarios. Source: Cointelegraph/TradingView
- Mean reversion: Suggestive of a potential correction towards significant moving averages, needing to hold above $118,000 to maintain bullish momentum.
Overall, the market seems poised for consolidation, with an upward bias prevailing unless a breakdown occurs below the mid $118,000 level.
This article contains no investment recommendations. Each investment and trading move carries risks, and readers should carry out their own research before making decisions.
