Bitcoin’s market activity has picked up, reaching as high as $135,000 resistance, while finding substantial support near $120,000. Recent on-chain data indicates that the market hasn’t overheated, despite a drop to $122,500 during the week.

Key Insights:

• Bitcoin fell to $122,500, with no overheating signs detected.
• The $135,000 resistance remains a significant barrier for the currency, while support is seen around $120,000.

Market experts believe that despite a recent 1.7% dip from the all-time high of $126,200 on Monday, Bitcoin’s upward trajectory is still secure.

BTC/USD hourly chart. Source: Cointelegraph

Possible Short-term Corrections

Analyst Mags notes, “BTC has been in an up-only mode, producing just one negative candle over the last 11 days.” Currently, it seems Bitcoin is slightly retreating towards the key $123,300 support level, which, if maintained, could lead to a price increase.

“Overall, dips are for buying, and the next resistance is near $135,000.”

BTC/USD daily chart. Source: Mags

Michael van de Poppe, founder of MN Capital, commented that Bitcoin is currently stabilizing near its historic high, emphasizing that it’s preparing for the next major increase towards $150K.

BTC/USD 12-hour chart. Source: Michael van de Poppe

Recent reports suggest that Bitcoin may hover within a range of $122,000 to $124,000 while gaining momentum for further upward movement.

Acceleration in Bitcoin’s Price Momentum

Swissblock, a wealth management firm, pointed out that Bitcoin’s increase continues despite the minor dip, noting a unique situation where recent surges have breached resistance levels without significant corrections.

“Momentum is igniting at resistance, not fading from it.”

Furthermore, Glassnode highlighted that Bitcoin’s Relative Strength Index has surged to 66, indicating strong buying activity. Currently, spot trading volume has increased significantly as well, suggesting heightened investor engagement.

Bitcoin: Spot CVD and spot volume. Source: Glassnode

“The increase supports current price momentum, indicating improved investor confidence. Maintaining this activity is crucial for the upside trend.”

Key Levels to Monitor

Bitcoin’s Short-term Holder (STH) cost basis suggests that buyers are active. If Bitcoin retests its prior high at $133,460, there is room for growth before any major selling occurs. However, critical support lies at $113,300, a historically important level.

Bitcoin short-term cost basis bands. Source: Glassnode

Investors are advised to conduct thorough research as this article is not investment advice.