Key Insights:
- Bitcoin nears $117,200 resistance, which could determine a new ATH.
- Analysts forecast Bitcoin may reach $128,000 as it enters the Distribution phase.
- Bitcoin momentum weakens, with a risk of slow growth or sharp decline.
Bitcoin (BTC) is approaching a crucial price point in its quest to reach a new all-time high (ATH). The next key resistance is set at $117,200, which could determine whether the cryptocurrency continues its upward momentum or faces a retracement. Analysts are closely monitoring this level, as it will likely influence Bitcoin’s movement in the coming weeks.
Bitcoin in the Final Phase of Market Cycle
According to analyst MerlijnTrader, he suggests that Bitcoin is in the final phase of a three-stage market cycle. The analyst states that the cryptocurrency is moving into Stage 3, known as the Distribution phase.
This phase typically sees significant price increases as large investors capitalize on their positions, while retail traders may sell in a panic. The Accumulation and Manipulation phases saw large investors quietly collecting Bitcoin while misleading retail traders with price fluctuations.
Accumulation and Manipulation Phases | Source: XNow that Bitcoin is nearing the $114,000 mark, he predicts it will grow further toward $128,000. His forecast aligns with the broader outlook for Bitcoin in 2025, suggesting continued upward movement.
Resistance Levels and Potential Breakthrough
Meanwhile, analyst Ted Pillows considers the $117,200 level a critical resistance point. He explains that Bitcoin recently reclaimed the $113,500 level, which was an important milestone in its recovery.
Ted Pillows noted that, if Bitcoin can breach the $117,200 mark, it could open the door to a new all-time high. If the price fails to break through this resistance, a retracement could occur, bringing Bitcoin back to lower levels.
Potential Breakout | Source: XThe $117,200 resistance is particularly important as it coincides with a CME gap, which adds to its relevance in Bitcoin’s price action. Ethena price is currently at $0.76, down 1.74% in the last 24 hours. The 24-hour trading volume stands at $630,538,287.
Market Shows Weak Momentum
In addition, AxelAdlerJr notes that Bitcoin’s momentum is currently weak. The cryptocurrency is in the Impulse Cooling Zone with negative 30-day momentum.
While the market is not in a structural breakdown, Adler highlights that Bitcoin is in a slow unloading phase, which could signal a gradual reduction in momentum.
Weak Price Movement | Source: XAdler believes that the trend is still intact, pointing out that a resurgence in momentum above 0 or even a rise above +10% would indicate renewed market strength. Adler cautions that the market is currently in drift mode, with thin liquidity, which could result in either slow upward movement or a sudden sharp decline.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/bitcoins-path-to-new-ath-opens/
