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Preparation for Bitcoin's All-Time High (ATH) Rebuttal Signals Potential Big Breakout

Bitcoin currently hovers around the $113,000 mark, bouncing back from its fall to $108,000. Financial experts predict a confirmed breakout could occur if the price surpasses $116,000, potentially leading to a retest of the $124,000 level.

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Bitcoin's Potential Major Breakout on Horizon? Preparations Underway for All-Time High Re-test
Bitcoin's Potential Major Breakout on Horizon? Preparations Underway for All-Time High Re-test

Preparation for Bitcoin's All-Time High (ATH) Rebuttal Signals Potential Big Breakout

Bitcoin, the world's largest cryptocurrency, is currently trading at $112,400, according to recent data. The digital asset is in a consolidation phase just below the resistance of $113,000, following a pullback from a recent all-time high near $124,000.

Analysts have confirmed a breakout above a descending trendline that had capped the price since mid-August. Jesse Olson, one such analyst, highlighted the breakout and mentioned $116,000 as part of the current consolidation level, with an initial target around $118,000. A Daily Close and/or retest of the $113K region would ensure additional trend continuation to the upside.

The recovery of Bitcoin follows a period of steady outflows, with more Bitcoin leaving exchanges than entering. This trend has persisted into September, supporting the rebound toward $113K. In late August, outflows peaked near -30K BTC as the price slipped to $108K, indicating accumulation during weakness.

On-chain data shows continued negative netflows, indicating a lack of selling pressure. With fewer Bitcoin available on exchanges, it seems that selling pressure is reduced. This could potentially contribute to the ongoing uptrend.

However, analysts caution that if netflows turn positive near $113K-$116K, it could indicate profit-taking. In such a scenario, failure to hold above $113K may shift the focus to the $102K support zone.

Overhead resistance levels for Bitcoin are at $114.7K, $116.8K, $119.9K, and $124.3K. A move through $114.7K-$116.8K would confirm momentum and open the way for another retest of $124,000. Conversely, a clearing of $116K would increase the strength of the retesting of $124K high.

The daily trading volume of Bitcoin is $42 billion. As the cryptocurrency continues to consolidate, investors and traders will be closely watching these key resistance levels to gauge the next direction of the market. The market is testing key resistance, and whether Bitcoin can break through these levels will be a critical factor in determining its short-term trajectory.

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