Bitcoin has shown remarkable resilience, bouncing back significantly since its April low of approximately $75,000. Now trading just a fraction away from its record height of $112,000, the cryptocurrency is at a crossroads. The upcoming price movements could crucially indicate whether we enter a fresh rally or revert to earlier support levels near $103,600 and $100,000.
As bullish sentiment strengthens alongside improving macroeconomic environments, many investors are exercising caution. They are waiting for clear signals from Bitcoin’s price trend before making substantial investments.
Recent metrics from CryptoQuant provide valuable insights into the current landscape. The active supply percentage of Bitcoin has dropped by 17% over the last 30 days. This statistic reflects the transactional volume of Bitcoin and suggests that market activity may be slowing down. Such a decline could indicate that investors are either holding onto their assets or showing hesitation in making trades.
Bitcoin Prepares for Potential Growth as On-Chain Indicators Suggest Opportunity
The cryptocurrency market is on the rise, keeping pace with the recent gains in US stock markets that have reached historic highs. As economic uncertainties decrease and investor risk tolerance rises, Bitcoin finds itself at an essential juncture. With a notable 45% increase from April’s low, bullish traders are eager for a definitive breach of the $112,000 resistance to spark the next growth phase.
A significant on-chain metric illustrates that market conditions might be ripe for this movement. The “% Supply Active, 30D Change” metric measures shifts in Bitcoin’s active supply, revealing trends that can predict price movements. Generally, a positive reading indicates heightened trading activity, while a negative figure implies a lull, often associated with accumulation or market indecision.
Currently, the activity stands at -17%, hinting at reduced trading volume. Paradoxically, this may not be a negative sign; conditions similar to these have previously preceded substantial upward price movements. Essentially, when fewer coins change hands, it creates a scenario where demand could lead to significant price rallies once momentum resumes.
The low level of trading activity could signal the onset of a potentially explosive breakout. Bitcoin is currently stable just beneath its all-time high, buoyed by favorable economic indicators and subdued on-chain velocity. Historically, any uptick in activity—the result of breaking past previous highs—could mark the dawn of a new bullish phase. Market participants are keenly observing Bitcoin’s forthcoming performance.
BTC Weekly Chart Overview: Bullish Trends Emerging Beneath Historic Resistance
The weekly chart for Bitcoin demonstrates persistent strength, with prices consolidating near the $112,000 all-time high. As of now, BTC is trading around $107,795, well above the critical support level at $103,600, while consistently forming higher lows since April. The 50-week moving average is on an upward trajectory at $85,961, signifying a robust medium-term uptrend.
Despite facing obstacles near the $109,300 resistance level, bulls have successfully maintained weekly closures above the $100,000 mark, indicating ongoing bullish momentum within a compact flag structure. Although a slight decline in trading volume suggests that many are biding their time, the absence of aggressive sell-offs points to an overarching expectation of a rally rather than a correction.
A successful breach and close above the $109,300 resistance level could trigger a wave of buying activity, pushing Bitcoin into uncharted territory. Conversely, failing to exceed this resistance might lead to another testing of support around $103,600, a reliable floor throughout Q2 2025.
Image courtesy of Dall-E, data visualizations sourced from TradingView.
