Key takeaways:
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Bitcoin dropped to $122,500 on Tuesday, but onchain data shows no signs of an overheated market.
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The resistance at $135,000 remains the main BTC price barrier for now, with key support around $120,000.
Market analysts said Bitcoin’s upside remained intact despite the 1.7% correction from its all-time high of $126,200 reached on Monday.
Bitcoin to see a “small pullback” before continuing higher
“BTC has been in an up-only mode,” with the price printing just one red candle in the past 11 days,” said analyst Mags in an X post on Tuesday.
The BTC/USD pair is taking a small pullback in lower time frames toward the key support level at $123,300.
A daily candlestick close above this level could see Bitcoin “continue higher,” the analyst said, adding that the failure to hold this support could see a retest of the $120,000 zone.
“Overall, dips are for buying, and the next resistance is near $135,000.”
MN Capital founder Michael van de Poppe said Bitcoin is consolidating around the all-time high, adding:
“It’s building up stamina for the next big breakout toward $150K.”
An accompanying chart showed that the $118,500-$120,500 zone would be an “optimal entry point” in the event of a correction.
As Cointelegraph reported, Bitcoin could consolidate within a narrow range between $122,000 and $124,000 over the next few days as it builds momentum to break higher into price discovery.
Bitcoin’s price momentum is accelerating
Private wealth manager Swissblock stated that Bitcoin’s upward momentum remains strong, despite the slight correction from record highs.
Swissblock shared a chart revealing a “rare” setup where the latest rally saw Bitcoin price momentum break through resistances without major corrections.
“Momentum is igniting at resistance, not fading from it.”
“Nevertheless, a bit of short-term friction is needed to build deeper acceleration,” Swissblock added.
Echoing this observation, onchain data provider Glassnode pointed out that Bitcoin’s relative strength index (RSI) has increased to 66 from 44 over the last seven days, indicating a 50% rise in upward momentum.
This reflects a “stronger buying momentum and growing market confidence,” Glassnode wrote.
Related: Gold rally implies $644K per Bitcoin in ‘equivalent value’ — VanEck
Meanwhile, spot demand is accelerating with spot cumulative volume delta (CVD) turning positive and rising to $68.7 million from -$73.6 million over the last week.
Trading volume on centralized exchanges also increased by 32% to $9.27 billion, from $6.99 billion, over the same period.
Glassnode added:
“The rise supports recent price momentum, suggesting stronger investor engagement and confidence. Although, maintaining this elevated activity will be key to sustaining the uptrend.”
Onchain data reveals key Bitcoin price levels to watch
Looking at Bitcoin’s short-term holder (STH) cost basis reveals that the STHs are still active and not exhausted.
STH cost basis refers to the average purchase price of investors who have held Bitcoin for less than 155 days.
The price touched the “heated” band of this metric on July 14, when it hit its previous all-time high of $123,200, but did not enter the overheated zone.
If it rises to retest the upper band — matching the one standard deviation above the STH realized price — it could hit fresh all-time highs at $133,460.
Higher than that, the next resistance is the “over-heated” band at $150,000 — matching the two standard deviations above the STH realized price.
This suggests there’s still room for expansion before we see any panic selling or euphoria.
On the downside, the first major support sits at $113,300, representing Bitcoin’s STH realized price.
This price band has historically served as a vital support level, as seen between April 6 and Sept. 25, as well as during the October 2024-January 2025 rally.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
