Bitcoin Hits New All-Time High: Analysts Weigh In on What’s Next

Bitcoin’s all-time high (ATH) trended on crypto social media this week, with nearly half of all mentions discussing the recent milestone achieved by the OG coin. Even as the coin posted a strong climb during this period, experts believe such a level of dominance may lead to a short-term top and usually precedes a brief retracement.

Santiment Analyst Warns of Retail FOMO as Bitcoin Hits All-Time High

Santiment analyst Brian Quinlivan noted that a huge social dominance surge followed as BTC broke above $123,100 for the first time since its creation. In the Wednesday report, Quinlivan explained that 43.06% of all crypto chatter centered around the first-born asset. 

However, the Santiment analyst argued that the sudden spike was a FOMO reaction from retail traders who rallied around the asset as its value peaked. His view challenges the position of several other crypto commentators who believe that retail traders are yet to flood the market.

Following BTC’s rise to a fresh ATH of $117,894 on July 11, Bitwise head of research André Dragosch admitted that retail investors remain absent.

Even with the growing positivity around the asset, Quinlivan acknowledged that a spike in Bitcoin’s social media mentions historically follows downtrends. He urged market participants to let the market frenzy subside before entering positions.

Wait for the euphoria to cool down some, and you’ll likely find another key entry point coming up.

Brian Quinlivan

Quinlivan initially cautioned that previous spikes in optimism, particularly on June 11 and July 7, were accompanied by price drops.

Bitcoin Rally Amid Market Surge, Experts Say

While Quinlivan holds a rather conservative stance towards the OG crypto, some market commentators expect Bitcoin’s upward travel to continue. CryptoQuant analyst Axel Adler Jr. even suggested that the asset is yet to peak, highlighting the absence of a peak signal. 

For context, a peak signal generally appears when the market is overheated and a correction is imminent.

Following its rally to a new ATH, prominent market analyst Ali Martinez noted that the first-born asset has hit the first price target after breaking out of a parallel channel. He added that the next key price points are $131K, $144K, and $158K.

BTC Poised for Breakout as Bullish Indicators Signal Continued Uptrend

As Bitcoin hovers above a major psychological level, investors are monitoring closely for the next strong northbound momentum. Interestingly, data from Darkfost shows that the Bitcoin growth rate indicator continues to flash bullish signals.

The price action indicator has helped offer insights into the broader market trajectory and strength. After months of a rough market atmosphere, the latest data shows the market could be finally entering a healthy phase.

Here’s what technical indicators have to say about the BTC price:

• Bullish alignment of moving averages: the 50-day SMA ($112,152.29) is trending above the 100-day and 200-day SMAs and is continuing to rise.
• Strong annual performance: BTC is up 78% over the past year, outperforming 78% of the top 100 crypto assets but underperforming Ethereum.
• Trading above key support: Price is above the 200-day SMA, reinforcing a long-term bullish trend.
• Positive short-term momentum: BTC had 18 green days in the last 30, showing 60% positive daily movement.

At the time of writing, Bitcoin is trading at $118,640 after falling 4% from its all-time high of $123,091. Predictions suggest that the coin could surge to new price levels if it stays above $115,700 and stabilizes above $122,000. 

But a drop below the $115,700 market could trigger a steeper drop to the 50 SMA or even the $110,000 mark. For now, price actions and underpinning market trends suggest that Bitcoin’s current consolidation is just a brief pause before the next leg higher.

James G.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.