Yesterday, Bitcoin ascended to a new peak, momentarily soaring above the $112,000 threshold, a feat that has set the market abuzz with bullish fervor. This ascent has rekindled the spirits of investors, many of whom are now eyeing the horizon for a potential breakout into uncharted territory. Despite the recent strength, Bitcoin has steadfastly held above critical support levels, defying the naysayers and maintaining an upward trajectory. Yet, not all are convinced by this meteoric rise.
Some market pundits, ever the skeptics, argue that this surge might be nothing more than a fleeting mirage, a deceptive rally that could evaporate as quickly as it appeared. With volatility at a lull and macroeconomic conditions stable, these contrarian voices urge caution, warning that Bitcoin could retrace its steps and fall back into its previous range, below the resistance line.
Top analyst On-Chain Mind chimed in, drawing attention to a critical on-chain signal: HODL Momentum is trending downward. This shift suggests that fewer long-term holders are parting with their coins during this rally, a development that, paradoxically, is often a bullish omen.
Bulls Eye Breakout As HODL Momentum Strengthens
Having reached a new all-time high just above $112,000, Bitcoin is now consolidating beneath this crucial resistance level. The bulls are clearly in the driver’s seat, but the market is eagerly awaiting a clear, sustained breakout above $112K to signal the next phase of the rally. So far, Bitcoin has maintained its strength above previous support zones, trading in a tight range that hints at a decisive move on the horizon.
Macroeconomic developments continue to favor risk assets. The U.S. Congress, in a rare display of bipartisan cooperation, passed President Donald Trump’s “big, beautiful” bill just before the July 4 deadline. This legislation, brimming with substantial tax cuts and aggressive spending measures, is expected to stoke inflationary pressures—conditions that have historically been a boon for Bitcoin. Moreover, robust labor market data in the U.S. has bolstered investor sentiment, anchoring bullish expectations.
Adding to the optimistic outlook, on-chain data provides compelling evidence of long-term confidence. On-Chain Mind notes that HODL Momentum is now trending downward. This indicator measures the relative strength of Bitcoin holders who have kept their coins unmoved for over a year. A decline in this metric suggests that long-term holders are not selling into the rally, a promising sign for bulls.
This behavior implies a strong conviction and a willingness to weather volatility, rather than cashing out prematurely. Historically, when long-term holders choose to hold tight as prices climb, Bitcoin tends to experience powerful upward momentum. As the market digests macroeconomic shifts and psychological resistance, all eyes remain on the $112K level for confirmation. A clean break above this level could herald the start of a fresh surge into uncharted territory.
BTC Price Analysis: Holding the Breakout Zone
Bitcoin is currently trading at $111,079 on the 12-hour chart, after briefly pushing above the $112,000 mark, marking a new all-time high before a slight pullback. Despite this minor retracement, BTC is still holding well above the previous resistance level at $109,300, which is now acting as support. This structure confirms a breakout attempt, and bulls are now tasked with maintaining momentum for further gains.
The chart shows increasing volume during the breakout, indicating strong market participation. The price also remains above the 50-, 100-, and 200-period moving averages, all of which are sloping upward, suggesting a continuation of the bullish trend. As long as Bitcoin continues to close candles above the $109,300 support, the breakout remains valid.
The 12-hour structure also highlights a higher-low pattern dating back to late June, adding strength to the bullish setup. A successful defense of current levels could pave the way for a clean retest of $112,000, and potentially send BTC into price discovery territory. However, failure to hold the breakout zone could result in a drop toward $106,800 or even $103,600, where previous support and moving average confluence sit. For now, the market is watching closely for confirmation of this breakout as bulls attempt to maintain control. 📈✨
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2025-07-10 19:43