Bitcoin (BTC) has held steady above the $88,000 mark over the past few days, showcasing resilience as the broader market anticipates its next move. Price action remains robust, leaving investors waiting for lower prices frustrated, as BTC shows no signs of providing an easy entry point anytime soon.
Key data from CryptoQuant reveals that long-term holders (LTHs) are currently in an active distribution phase, signaling increased selling activity from this group. Despite this, the market has absorbed the additional supply without significant price impact, highlighting the strong demand supporting BTC at these levels.
As Bitcoin consolidates just below its all-time highs, traders and analysts are closely watching whether the current momentum will lead to a breakout or if a retracement is on the horizon. The balance between rising demand and LTH distribution will likely determine BTC’s near-term trajectory.
Can Bitcoin Set New ATH This Week?
Bitcoin is on the brink of breaking its all-time high (ATH) again this week, sitting just 2% below the $93,483 level set last Wednesday. Excitement is building as analysts and investors closely watch BTC’s price action, anticipating whether it will surge past this critical level or enter a prolonged consolidation phase.
While the bullish momentum remains strong, the possibility of a sideways movement could keep the price range-bound for an extended period before the next significant move.
Data from CryptoQuant analyst Axel Adler highlights that long-term holders (LTHs) are currently in an active distribution phase. Despite this, the increased supply has not significantly impacted Bitcoin’s price, thanks to strong demand that continues to absorb selling pressure. This dynamic reflects the robust market interest that is supporting BTC near its record highs.
Adler’s analysis also points to the LTH Spending Binary Indicator, which signals peak spending activity among LTHs. At the same time, the growing LTH supply suggests that a portion of long-term holders remain confident in BTC’s future price potential. These factors create a unique environment where high demand offsets distribution, keeping the bullish momentum intact.
As Bitcoin flirts with its ATH, market participants await confirmation of whether the price will push into uncharted territory or pause for consolidation. The outcome will likely set the tone for BTC’s trajectory in the coming weeks, with investors betting on the continued upside in this resilient rally.
BTC Price Action: Key Levels To Hold
Bitcoin is trading at $91,820, following several days of sideways consolidation just below its all-time high (ATH). Despite the pause, BTC has maintained its position above the $87,000 support level since the last breakout, signaling its importance as a crucial line for bulls to defend. Holding this level is vital for sustaining upward momentum and setting the stage for Bitcoin to push into uncharted territory.
However, a drop below $87,000 could shift market sentiment, likely triggering a correction as BTC searches for fresh demand. The next logical support zone lies around the $80,000 mark, with the potential for a deeper pullback if selling pressure intensifies. Such a retrace would provide an opportunity for sidelined buyers but could temporarily stall BTC’s rally.
Bitcoin’s price action remains robust, bolstered by demand that continues to outpace supply. This strong market interest has mitigated the impact of profit-taking and selling activity, keeping the broader uptrend intact.
As BTC consolidates near its ATH, traders closely watch key levels to determine whether the next move will be a breakout to new highs or a dip to test lower support zones. Either outcome will likely shape Bitcoin’s trajectory in the coming weeks.
Featured image from Dall-E, chart from TradingView