Bitcoin Price Momentum Drops 38% After ATH – Healthy Pause Or Warning Sign? | Bitcoinist.com

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Bitcoin is holding strong above the $110,000 level after breaking its previous all-time high on Wednesday, signaling the potential start of a massive bullish phase. The breakout marks a significant psychological and technical milestone, reigniting optimism across the crypto market. With bulls firmly in control, analysts are closely watching price action as BTC enters uncharted territory.

Related Reading: Bitcoin STH Still Holding Despite New ATH – Analyst Expects Profit Taking At $126KHowever, despite the excitement, the rally is showing early signs of cooling. According to on-chain data from CryptoQuant, current momentum has slowed by 38% following the breakout, an expected technical cooldown after reaching new highs. Historically, Bitcoin often consolidates or retraces shortly after breaching all-time high levels, allowing the market to reset before continuing its upward trend.

Still, the slowdown isn’t necessarily a bearish signal. It may reflect healthy market behavior, giving participants time to reposition and reinforcing the foundation for a sustained move higher. As long as BTC holds above key support levels near $105K, analysts remain confident in the broader bullish structure. Whether this consolidation leads to an impulsive rally toward $120K or a short-term retrace remains to be seen, but one thing is clear: Bitcoin is back in price discovery mode, and the next move could be decisive.

Bitcoin Faces Crucial Test Amid Recession Fears

Bitcoin is entering a pivotal phase as it trades above the $110K level, facing both macroeconomic headwinds and growing investor optimism. While fears of an impending recession and tighter financial conditions continue to dominate headlines, Bitcoin’s price action tells a different story—one of strength and resilience. In fact, BTC has steadily climbed higher despite rising bond yields, weakening equity markets, and widespread uncertainty, highlighting its evolving role as a hedge against traditional market instability.

However, for this bullish narrative to hold, Bitcoin must decisively break above the $115,000 level. Doing so would confirm the start of a new impulsive leg upward and potentially attract more institutional capital as the asset enters full price discovery mode. Until then, BTC remains in a critical zone that could define its trend for the coming weeks.

According to top analyst Axel Adler, the current rally has naturally decelerated, with momentum slowing by 38% following the all-time high breakout. Adler explains this as a “technical cooldown,” a normal pattern where the market consolidates or pauses after reaching major milestones. This “breather” allows leveraged positions to unwind, liquidity to reset, and investor sentiment to stabilize before a potential next leg higher.

Bitcoin Price Momentum | Source: Axel Adler on XDespite macro concerns, the price structure remains firmly bullish, and short-term consolidation may ultimately strengthen the foundation for another surge. If BTC can maintain current levels and absorb overhead resistance, the path toward $120K could come sooner than expected. Until then, all eyes remain on Bitcoin’s behavior at the $115K barrier—a critical mark that could define whether this rally has more fuel or if a correction is due.

Related Reading: Bitcoin Exchange Activity Declines Sharply Since July 2022 – Accumulation Or Apathy?

BTC Holds Above $111K: Momentum Slows After Breakout

The 4-hour chart for Bitcoin (BTC/USDT) reveals a strong uptrend, with price currently consolidating around $111,000 after reaching a new all-time high at $111,356. Price action remains bullish, holding above the 34 EMA (green), 50 SMA (blue), and key support levels at $103,600 and $100,000. This structure indicates a healthy continuation pattern, where BTC is taking a breather after an explosive rally from below $100K.

BTC holding strong around ATH | Source: BTCUSDT chart on TradingView Volume has tapered slightly, supporting CryptoQuant’s insight that momentum has cooled by 38%—a normal pause after reaching new highs. Moving averages are sharply upward-sloping, with the 200 SMA (red) far below current price, reflecting strong bullish momentum and wide separation from longer-term trends.

Related Reading: Bitcoin UTXO Profit/Loss Ratio Sits Below Critical Levels – How Long Until BTC Overheats? The current consolidation zone resembles a flag or pennant formation, which typically precedes another leg up if buyers step in with volume. However, traders should monitor any sharp drop below $107K, which would signal fading momentum and increase the risk of a correction toward the $103,600 support.

Featured image from Dall-E, chart from TradingView

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