Bitcoin remains in a consolidation phase just below the $111K level, showing signs of exhaustion in its upward momentum.

The market is currently in a state of anticipation, waiting for fresh demand or supply to define the next major move. Despite the pause, the broader outlook continues to favour a bullish continuation.

Technical Analysis

The Daily Chart

Bitcoin is currently navigating through a consolidation phase beneath its recently established all-time high of $111K, indicating a slowdown in bullish momentum following the breakout above the former ATH at $109K.

The market is showing signs of indecision, awaiting a fresh wave of demand to reignite the uptrend.

Despite the modest pullback to the $109K region, now acting as support, the lack of strong buying activity suggests that the bulls are cautious.

For BTCs price to resume its upward trajectory and reach the critical psychological level of $120K, increased participation from buyers is essential. Conversely, if the price fails to hold above the $109K breakout level, it may trigger a more significant correction, potentially targeting the $100K support zone.

Source: TradingView

The 4-Hour Chart

Zooming into the 4-hour timeframe, Bitcoin continues to respect an ascending channel structure, consistently forming higher lows and higher highs.

Following its rejection from the $111K resistance zone, the price retreated to the lower boundary of the channel near $106K, where it found temporary support and rebounded slightly.

The market currently reflects a state of balance between bulls and bears, suggesting that further consolidation may occur in the short term.

A breakdown below the channel support could open the door for a sharper decline toward the $100K range. However, as long as the structure remains intact, BTC is more likely to oscillate between the lower trendline and the $111K resistance, building pressure for an eventual decisive breakout that will define the next major move.

Source: TradingView

On-chain Analysis

Despite reaching a new all-time high at $111K, a wave of profit-taking is typically expected. Particularly if long-term holders start to sell, it could trigger a significant correction. To evaluate whether this cohort is distributing, the Exchange Inflow Coin Days Destroyed (CDD) metric serves as a key indicator.

Historically, each major peak in Bitcoin’s price during previous bullish cycles has been accompanied by sharp spikes in this metric, reflecting the movement of long-dormant coins to exchanges, often signaling that long-term holders are offloading their assets.

However, this current rally paints a different picture. Despite the price climbing to a new high, the Exchange Inflow CDD has remained subdued. This lack of activity from seasoned holders suggests that they are not yet participating in profit-taking and instead continue to hold their coins with conviction. This behavior underscores strong confidence in the continuation of the uptrend, with expectations for even higher price targets in this cycle.

As long as this group remains inactive and does not exert significant sell pressure, the path remains open for Bitcoin to push toward new highs in the mid-term.

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Cryptocurrency charts by TradingView.