Bitcoin’s Potential Breakout: An In-Depth Analysis
Bitcoin’s Quest for Price Discovery
Bitcoin is on the verge of a significant breakout, showing robust price action above crucial support levels. Despite a recent close attempt at the all-time high of $112,000 falling short, bullish investors are now focused on achieving a strong weekly close. This could potentially pave the way for a further leg up. The market is keenly observing the situation, as the days ahead might reveal whether Bitcoin is ready to transcend its current range and set new records.
On-chain analysis from CryptoQuant supports this optimistic outlook. The Binary Coin Days Destroyed (CDD) metric, which monitors the movement of long-dormant coins, indicates that activity involving ancient coins is currently twice below its annual moving average. Traditionally, spikes in CDD are indicative of distribution phases initiated by long-term holders. However, the current lack of activity suggests these experienced investors have confidence in holding, rather than selling.
Advertisement Banner
This reduced CDD activity, coupled with steady price action and significant support at the $108,000 level, paints a positive picture for Bitcoin. Should the bullish momentum persist, Bitcoin might venture into new territories, reinforcing its stature as the premier asset in the cryptocurrency market.
Long-Term Holders Stay Inactive While Bitcoin Gathers Momentum
Bitcoin has been consolidating just below its $112,000 all-time high since May’s end, but it is gathering momentum for a potential breakout. Since June 22, the leading cryptocurrency has risen by 10% and continues to hold above important demand zones, particularly around $108,000. This ongoing strength has analysts keenly watching for a decisive move above $112,000, which could spark a fresh wave of bullish price discovery.
While the short-term direction remains unclear, the long-term structure suggests enduring strength. Analysts predict that once Bitcoin overcomes the current resistance zone, it could swiftly reach new heights, driven by robust investor confidence and favorable on-chain signals.
Renowned analyst Axel Adler has provided insights into the Binary CDD indicator, highlighting long-term holder behavior. The CDD measures when older, previously dormant coins become active, often signaling distribution phases. Adler points out that ancient coin activity is currently twice below its annual moving average, indicating that long-term holders are not selling amidst the recent strength.
Despite recent movements associated with notable figures like Roger Ver, there has been little lasting market impact beyond temporary FOMO. Historically, spikes in CDD have coincided with market cycle tops, as seen near $70,000 and $100,000. The absence of such spikes now suggests that the current rally is structurally sound and not overheated.
With Bitcoin holding firm and ancient coins remaining inactive, the conditions seem favorable for a breakout. Should bulls successfully reclaim $112,000 with conviction, Bitcoin could enter price discovery, setting the stage for broader crypto market dynamics in the upcoming weeks.
Bulls Defend Key Support as Bitcoin Hovers Below All-Time Highs
Bitcoin continues to trade within a tight consolidation range just below its $112,000 all-time high, with current pricing near $108,245. As highlighted in the 12-hour chart, Bitcoin has tested the $109,300 resistance level multiple times but has yet to break through convincingly. Meanwhile, bulls are defending the $106,000–$106,500 zone, reinforced by the 50 and 100-period Simple Moving Averages (SMAs) acting as dynamic support.
Despite relatively low trading volume compared to the May breakout, this indicates a potential buildup before a significant move. The current consolidation between $103,600 and $109,300 mirrors a classic high-timeframe range, with short-term liquidity traps forming above and below. A confirmed breakout above $109,300 could unlock price discovery, while a breakdown below $103,600 might trigger a retest of lower support levels.
The market structure remains bullish as long as Bitcoin stays above $106,000, particularly above the $103,600 horizontal support zone. With multiple higher lows and bulls defending critical levels, the market appears poised for a decisive move. Traders should look for volume expansion and a clear break of resistance or support in the coming days to confirm the next trend direction.
Editorial Process
Our editorial process at Bitcoinist is dedicated to delivering thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards, and each page undergoes meticulous review by a team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
