Bitcoin has been steadily pushing up over the past few days, fueled by positive sentiment following the U.S. Federal Reserve’s optimistic outlook on economic growth. Investors are showing renewed confidence as BTC holds above the $104K mark, consolidating just below its all-time high (ATH) and setting the stage for a potential breakout.
Despite recent volatility, CryptoQuant data shared by Axel Adler highlights an interesting trend in Bitcoin’s price behavior. BTC’s monthly realized volatility currently stands at 11%, significantly lower than previous cycle peaks of 16% and 14%. Historically, volatility has tended to decline before major price movements, suggesting that Bitcoin could be gearing up for its next big move.
As Bitcoin hovers just below ATH, market participants are closely watching key levels to determine whether BTC will break into price discovery or enter a short-term consolidation phase. With strong fundamentals and bullish momentum, analysts believe Bitcoin’s next move could define the market’s trajectory for the coming months. The question now is: will BTC finally push above ATH, or will it take another breather before the next leg up?
Bitcoin Enters Crucial Phase, Poised for Major Gains
Bitcoin is now at a critical juncture, with many analysts predicting massive returns this year as BTC prepares to enter uncharted territory once again. While some argue that Bitcoin is near a cycle top, others believe the real rally is just beginning, with new all-time highs (ATH) and higher price targets on the horizon.
Supporting the bullish case, CryptoQuant data shared by Axel Adler reveals that BTC’s monthly realized volatility currently sits at 11%, lower than previous cycle peaks of 16% and 14%. Historically, volatility tends to decline before major breakouts, making this metric a key indicator of an impending explosive move. In past cycles, volatility dropped to 8% before a moderate rally and even further to 4% ahead of major surges, suggesting that BTC is setting the stage for another leg higher.
The coming weeks will be pivotal, as bull markets typically accelerate aggressively in the final year of the halving cycle. Investors are eyeing the $110K mark, which many see as a psychological level that could trigger FOMO-driven buying if broken. Meanwhile, long-term holders remain confident, with on-chain data showing BTC continues to flow out of exchanges, reducing available supply.
If history repeats itself, BTC could be on the brink of a parabolic rally, driving the crypto market into new all-time highs and solidifying its role as the best-performing asset of this cycle. Investors are now closely watching key resistance levels, waiting for Bitcoin to confirm its next move. Whether BTC consolidates further or explodes past ATH, one thing is certain: volatility is returning, and Bitcoin’s biggest moves are still ahead.
Bitcoin Price Holds Strong as Market Awaits Breakout
Bitcoin (BTC) is trading at $104,700 after days of volatility and uncertainty, as the market fluctuates between bullish price action and bearish sentiment. Despite BTC’s resilience above key demand levels, market sentiment turned cautious in recent days. However, on Wednesday, Bitcoin reignited optimism, suggesting that bulls are preparing for the next leg higher.
For BTC to confirm a strong uptrend, the price must close above the $106K mark in the coming days. Breaking this level would signal renewed bullish momentum and could trigger an explosive rally toward $110K and beyond. Analysts believe that once BTC surpasses ATH and enters price discovery, momentum-driven buying could push the price significantly higher.
However, failure to clear $106K could result in continued consolidation or even a retracement to retest support levels. Investors are closely watching whether BTC can sustain current levels and break through resistance to confirm the next phase of the bull cycle.
With institutional demand rising and key on-chain metrics favoring long-term strength, BTC appears well-positioned for a potential breakout. The coming days will be crucial, as Bitcoin teeters on the edge of another major price surge.
Featured image from Dall-E, chart from TradingView
