After weeks of waiting, Bitcoin (BTC) has finally surpassed its previous all-time high by crossing the $125,000 mark. While this achievement sparked excitement in the crypto sphere, the euphoria was short-lived. Dive into the analysis of this significant event.
In the early hours of Sunday morning, the Bitcoin price reached $125,700, surpassing its previous peak of $124,500 recorded on August 14. This progress also translated into a record market capitalization of over $2.5 trillion, making Bitcoin one of the most valuable assets in the world.
However, this euphoria didn’t last long. After peaking at over $125,000, the Bitcoin price quickly dropped, stabilizing around $122,300, a decrease of about 2.5% from its new record. This fall corresponds notably to the CME gap created at this level during the weekend.
This fluctuation also impacted other cryptocurrencies such as Ethereum (ETH), Ripple (XRP), Solana (SOL), and Dogecoin (DOGE), which underwent price adjustments, albeit to a lesser extent.
Currently, Bitcoin is trading around $123,700, a crucial level to monitor in order to anticipate the market’s next movements. Indeed, a drop below the $122,300 threshold could trigger a new fall toward $120,000.
Bitcoin’s short-term difficulty is mainly due to selling pressure from whales on Binance. The orderbook heatmap shows that Bitcoin had to absorb a sale of 1600 BTC last night at $123,450. Bitcoin maintaining above this level is a good sign, indicating that a new ATH is possible within the next 24 hours.
Moreover, the Volume Profile Order Blocks confirm this liquidity zone is difficult for BTC to break through. An ATH is probable, but a consolidation between $120,000 and $130,000 during the next two weeks is also a scenario to consider.
Related articles:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
