Bitcoin Approaches $123K All-Time High Amid Low Reversal Risk
Bitcoin is trading near critical levels after a 9% rise since August, approaching its all-time high of $123,000. Analysts are divided on the future trajectory:
- Some anticipate a breakout leading to new highs.
- Others warn of potential corrections if buying pressure decreases.
Key data from CryptoQuant indicates the Realized Profit and Loss (P&L) Ratio is close to its historical average, suggesting no overheating in the market yet. This could imply:
- Room for further upside with manageable risk of downturns.
- Long-term trends remain intact but sensitive to sentiment shifts.
Market Analysis
Analyst Axel Adler notes that current market conditions present lower risks for sharp reversals compared to previous cycles. The P&L Ratio's alignment with averages hints at market balance despite volatility.
Bitcoin is at a pivotal price range where a breakout above the all-time high is crucial for momentum continuation. Failure to do so may lead to corrections or sideways consolidation.
On-chain data reflects strong fundamentals, with:
- Healthy accumulation trends.
- Steady network activity.
- Contained leverage in derivatives markets.
However, uncertainties in macroeconomic conditions and regulatory developments continue to impact sentiment.
Current Price Action
Bitcoin has rallied nearly 9% since early August, facing resistance near $123,217.39. After a pullback to around $118,500, this level remains critical for prospective breakout attempts. BTC is currently above key moving averages:
- 50 SMA ($116,605)
- 100 SMA ($117,340)
- 200 SMA ($112,019)
A failure to surpass $123K may trigger renewed selling, while a confirmed breakout could initiate price discovery towards fresh highs.
