On the cryptocurrency market, Bitcoin investors are expressing concerns that the peak of the current price cycle may have been reached, which could signal a price drop. Despite this, several key support levels may provide backing for the market.
Daily Chart
The daily chart shows that Bitcoin has been rising within a long-term ascending channel, having reached a new all-time high above $124K. However, the price recently broke down from this channel and is now moving towards the critical $110K-$112K support zone, which also aligns with the 100-day moving average.
The market's reaction to this level will likely define the trend for the coming weeks. This area could trigger either a deeper correction or fuel another bullish rebound. The key question now is whether buyers can defend this support or if sellers will take control.
4-Hour Chart
On the 4-hour chart, the significance of the $112K support level is clear as it represents the previous swing low. A decisive breakdown below this level would shift the market structure into bearish territory for the coming weeks.
At the same time, the RSI remains under the 50 mark, indicating clear bearish momentum and is approaching oversold conditions. Therefore, investors are closely watching this level, as a breakdown could lead to a continuation lower towards the critical $104K bullish fair value gap.
Onchain Analysis
The analysis of Bitcoin's active addresses shows that while the price has reached new all-time highs, the number of active addresses has not followed suit. This clear divergence between price and network activity suggests that while capital inflows are driving prices up, actual on-chain usage is not expanding at the same pace.
Currently, active addresses remain well below their peak and continue to decline. This lack of confirmation from on-chain activity raises concerns about the sustainability of the rally, indicating fewer unique participants are driving the price action.
In the current market situation, Bitcoin is facing critical support levels that will determine its future price dynamics. The resilience of these levels and on-chain activity will significantly influence upcoming price fluctuations.
