Bitcoin is facing a pivotal moment as it hovers just below the $123,000 all-time high. While bulls remain in control, price action has stalled beneath this key resistance, exposing a lack of decisive momentum. After a strong 20% rally since late June, the market now waits for a breakout confirmation to extend the uptrend.
Sentiment remains overwhelmingly bullish, driven by increased adoption, legal clarity in the US, and favorable macroeconomic developments. However, recent on-chain and exchange data show a noticeable decline in spot buying pressure. This divergence between sentiment and real demand suggests that bulls may be hesitating to enter at current levels, possibly due to expectations of a correction or profit-taking near the highs.
The price structure remains bullish as long as BTC holds above the $115K support zone, but the inability to break $123K raises concerns about a possible short-term reversal or continued sideways action. For now, Bitcoin’s trend remains intact, but a clear surge in volume and buying activity will be required to reclaim new highs and maintain bullish momentum.
Bitcoin Sentiment Stays Bullish, But Buying Pressure Fades
Top crypto analyst Axel Adler recently shared an update on the Bitcoin Advanced Sentiment Index, offering key insights into the current market psychology. According to Adler, the index currently reads 64%, signaling that sentiment remains solidly bullish. However, he noted a critical caveat: while the market leans toward buying, bulls appear to lack the aggression needed to push Bitcoin decisively above its all-time high of $123,000.
This hesitation is consistent with what’s unfolding in the charts. After a sharp rally of over 20% since late June, Bitcoin is now consolidating in a tight range between $115K and $120K. While this structure suggests strength, the lack of follow-through buying at higher levels reflects caution among investors. It appears that market participants are waiting for a clear catalyst before positioning more aggressively.
The current compression in price action could precede a large move, as periods of low volatility at elevated levels often do. Traders should prepare for a breakout in either direction. While the overall trend and sentiment favor upside continuation, the possibility of a correction remains in play, particularly if sentiment begins to fade or macro conditions shift unexpectedly.
BTC Consolidates Near All-Time Highs
The daily chart shows Bitcoin consolidating just below its all-time high of $123,000, trading at $118,636 at the time of writing. The recent price action suggests strong bullish control, but the lack of a decisive breakout above the $122,077 resistance has introduced short-term uncertainty. The structure remains clearly bullish, with BTC forming higher highs and higher lows since the rebound from the March lows near $97,000.
Notably, Bitcoin is holding well above the 50-day ($109,225), 100-day ($103,913), and 200-day ($97,949) moving averages. These levels now serve as layered support, reinforcing the long-term bullish trend. The ongoing consolidation above $115,724 suggests that bulls are defending this zone with conviction.
However, volume has not followed through as strongly during this consolidation phase, a sign that some market participants are waiting for confirmation before committing new capital. If BTC breaks above $122,077 with strong volume, it could trigger a breakout and price discovery toward higher levels. On the flip side, a break below $115,724 could lead to a deeper retracement toward the 50-day MA.
Featured image from Dall-E, chart from TradingView
