Analysts are closely watching technical indicators, ETF inflows, and macroeconomic developments to gauge the sustainability of the current rally.
As of writing, Bitcoin’s latest price stands around $116K, marking around 1% increase over the last 24 hours. The cryptocurrency traded between $114,838 and $116,705 in the same period, highlighting short-term volatility amid rising bullish sentiment.
Bitcoin (BTC) was trading at around $115,956, up 0.93% in the last 24 hours at press time. Source: Bitcoin Price via Brave New Coin
The market capitalization of Bitcoin currently sits at approximately $2.31 trillion, with a 24-hour trading volume of $44.26 billion. The Fear & Greed Index shows a moderate bullish score of 57, reflecting cautious optimism among traders.
Institutional demand continues to play a key role in driving Bitcoin’s recent gains. According to market data, spot Bitcoin ETFs recorded $1.15 billion in net inflows between Monday and Wednesday, including a single-day inflow of $752 million on Wednesday alone.
BTC nears key $117,200 resistance as rising ETF inflows signal potential for a new ATH soon. Source: @TedPillows via X
Ted Pillows, a crypto analyst, noted that ETF inflows are signaling renewed institutional accumulation. If BTC reclaims the $117,200 level, a new ATH could be within reach in the coming weeks.
These inflows indicate that large players are actively buying, adding support to the ongoing rally and increasing the likelihood of a breakout above the $116K resistance level.
Data from TradingView suggests that Bitcoin has reclaimed an 8-year trendline, a level historically associated with previous cycle tops. BitBull, a market commentator, stated: BTC momentum is very strong. If the current trend holds, a new ATH could materialize in 2–3 weeks.
BTC reclaims its 8-year trendline, showing strong momentum after July breakout, with a new ATH possible in 2–3 weeks. Source: BitBull via X
Technical indicators, including the Stochastic RSI, show strong bullish momentum when Bitcoin closes near highs. However, some analysts caution that historical seasonal patterns and macroeconomic shifts could introduce volatility despite the positive trend.
On-chain data shows Bitcoin’s MVRV ratio dipping below its SMA365, a departure from typical bull-cycle behavior. This indicates fragility despite favorable macro conditions. Meanwhile, on-chain transaction volumes surged to $62 billion, outpacing $41 billion across centralized exchanges (CEX).
Post-ATH, BTC shows $62B on-chain volume versus $41B CEX, with declining volume signaling thin liquidity amid price growth. Source: @AxelAdlerJr via X
Such divergence suggests a mismatch in liquidity that could make price rallies vulnerable to sudden reversals. According to CoinGlass, Elevated Open Interest often precedes increased volatility. Traders need to watch whether buyers can defend critical support levels.
Market traders are conflicted regarding whether or not Bitcoin can sustain its upswing. Analysts cite the levels in mind: support at $113,500 and resistance at $117,200. A successful break above the resistance could lay the groundwork for new bullish rallies to $120,000 or higher, in line with some of the Bitcoin BTC price projections in 2025.
A break above resistance could spark bullish rallies toward $120K, echoing 2025 Bitcoin price projections—history may not repeat, but it often rhymes. Source: S8tension on TradingView
On the other hand, not holding support could initiate short-term corrections. Experts advise keeping a close eye on ETF inflows, on-chain volumes, and the MVRV ratio to gauge the subsequent direction.
The current price of Bitcoin is testing a strong resistance level at $116K in the midst of high ETF inflows, favorable technicals, and benign macro expectations. Short-term volatility cannot be ruled out, but the market structure indicates that there is still room for further upside if buyers can hold key levels.
As the year goes on, everyone’s eyes are on whether or not Bitcoin can get its momentum back and test all-time highs, with institutional activity and technical readings being number one drivers of the next breakout.
Also read: Litecoin (LTC) Price Prediction: Litecoin Rallies Toward $133 Resistance as Bulls Defend $115 Support
