3 Bitcoin charts bulls are watching after BTC’s weekly all-time high close

2 hours ago

Key takeaways:

Bitcoin’s terms find reached its strongest play adjacent astatine $123,400.
Onchain metrics and futures information amusement sustained bullish power supra $122,000.
Short-term outlooks are divided betwixt a momentum grind higher oregon a mean reversion dip.

Bitcoin (BTC) achieved its strongest play adjacent ever astatine $123,500 connected Sunday, confirming its introduction into a caller signifier of terms discovery. As it consolidated adjacent its all-time precocious (ATH) astatine $125,800, 3 cardinal onchain and derivative metrics highlighted the wellness and sustainability of the bullish trend.

Cryptocurrencies, Bitcoin Price, Markets, Cryptocurrency Exchange, Financial Derivatives, Bitcoin Futures, Price Analysis, Futures, Market Analysis

Bulls power Bitcoin’s structural momentum adjacent $123,000

Bitcoin’s structural momentum remains decisively bullish. Bitcoin researcher Axel Adler Jr. noted that BTC’s terms remained pressed against the precocious bound of the 21-day “Donchian” transmission ($125,200). At the aforesaid time, the operation displacement composite stays elevated astatine +0.73, an indicator of purchaser dominance and controlled pullbacks. The ongoing conflict astir the $125,000 ATH could find whether the marketplace extends higher oregon pauses for consolidation.

Futures travel scale signals bull pressure

The Bitcoin futures travel scale work 96%, with terms good supra its 30-day just worth of $117,500, is simply a classical “bullish mode” signal. This setup often precedes a little cooling oregon digestion signifier arsenic overheated futures enactment stabilizes earlier continuation.

Lastly, the Profit/Loss Block people remained astatine a maximum speechmaking of +3, showing that astir UTXOs are successful profit, a information that sustained beardown hazard appetite and accordant dip-buying behavior.

Meanwhile, the short-term holder MVRV ratio is pressing toward its +1σ set adjacent $133,000, suggesting imaginable absorption arsenic profit-taking unit builds. Maintaining P/L momentum supra the 90th percentile volition beryllium important to debar divergence and inclination fatigue.

Short-term outlooks: A momentum grind oregon mean reversion for BTC?

Bitcoin’s short-term operation presented 2 chiseled continuation scenarios pursuing its grounds play adjacent supra $123,000.

The archetypal script favored a momentum-based breakout, wherever “high prices enactment higher.” In this case, Bitcoin could consolidate wrong a constrictive scope betwixt $122,000 and $124,000, forming a high-timeframe basal arsenic volatility compresses.

Such behaviour typically precedes gradual inclination expansion, allowing the marketplace to widen its terms find signifier done a dilatory grind toward caller highs. Sustained precocious positioning would corroborate this operation arsenic a bullish continuation alternatively than a distribution.

Alternatively, a mean reversion setup remained viable. This would impact a corrective retest toward cardinal moving averages connected the 4-hour chart, the 50-, 100-, and 200-period exponential moving averages (EMAs) aligning with a liquidity pouch betwixt $118,500 and $120,000.

A pullback into this portion would reset short-term leverage, rebuild demand, and support structural integrity arsenic agelong arsenic $118,000 is held arsenic higher support.

Overall, the existent marketplace equilibrium suggested consolidation wrong bullish strength. Whether done dependable compression oregon a little liquidity sweep, the broader inclination bias remained upward unless momentum fractures beneath the mid-$118,000 region.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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