Bitcoin recently shattered its previous records, reaching an all-time high of $125,599. While this monumental achievement was followed by a slight pullback, market watchers are keenly analyzing whether the cryptocurrency will sustain its upward trajectory or if a correction is on the horizon. The current sentiment is a mix of cautious optimism, supported by several key technical and on-chain indicators suggesting further growth.
Navigating Key Price Levels
After its historic peak, Bitcoin experienced a brief retreat, trading around $123,974 at press time. Analysts are closely watching critical price levels. The $124k region is expected to flip into support, while a retest of the $119k mark, a significant moving average, remains a possibility. Further bolstering the demand side, the $117k level has been identified as an important demand zone. However, traders should be mindful of the "heated" zone around $126.6k, which has historically acted as a soft barrier for BTC prices, potentially delaying or halting rallies.
Underlying Bullish Momentum
Despite reaching a new all-time high, several indicators point towards sustained bullish sentiment rather than an immediate sell-off. The Money Flow Index (MFI) has pulled back to healthy bullish levels, indicating that the asset is not overextended. Crucially, the Mean Coin Age (MCA) continues its upward trend, signaling network-wide accumulation and a strong conviction among holders who did not sell en masse following the ATH. Furthermore, recent buyers are not yet statistically extremely profitable according to the short-term holder MVRV Bollinger Bands, suggesting less immediate risk of a major market correction. Based on these insights, projections include a potential 7% rally beyond $125k, targeting $133.6k, with Fibonacci extension levels even hinting at $139k in the coming weeks.
