Bitcoin (CRYPTO: BTC) is entering a phase of technical consolidation while maintaining strong upside momentum, according to new insights from Glassnode and Fairlead Strategies.
What Happened: Analysts suggest that recent price action reflects a constructive setup for further gains, particularly over a multi-month horizon.
Bitcoin traded around $118,800 on Tuesday morning, after briefly touching a new all-time high above $123,000 on July 14.
Despite a slight pullback, both on-chain and technical indicators signal continued investor confidence and robust capital flows.
Fairlead Strategies, in their July 21 outlook, identified a "measured move" target of $134,500 in the intermediate term, citing supportive long-term momentum and a breakout from prior resistance levels.
"The long-term momentum has reaccelerated with the breakout," Fairlead wrote, noting that short- and intermediate-term indicators remain firmly bullish.
The technical support zone is now established near $108,300, giving traders a foundation to interpret near-term volatility within a broader upward structure.
Glassnode's report on Tuesday reinforced this view, highlighting strong realized capital flows and healthy speculative participation.
Also Read: Ethereum Roars To $3,800: What’s Driving The Surge?
Profitability metrics remain elevated, although slightly cooling, suggesting a market still in the euphoric phase but beginning to de-risk.
Spot market activity showed some signs of profit-taking, with RSI retreating from overheated levels and cumulative volume delta (CVD) turning negative.
Nevertheless, elevated spot volumes point to ongoing market engagement. In derivatives markets, surging open interest and funding rates suggest speculative appetite remains high, though hedging activity is on the rise.
Why It Matters: The ETF market also reflected strength. U.S.-listed Bitcoin spot ETFs posted increased inflows and trading volumes, signaling sustained institutional demand despite a slight dip in MVRV ratios as investors begin realizing gains.
Ethereum (CRYPTO: ETH) and altcoins also showed strength, with Fairlead's analysis indicating that Ethereum could approach the $4,000 level by the end of Q3, buoyed by favorable technicals and improved relative strength versus Bitcoin.
Altcoins such as Avalanche (CRYPTO: AVAX), Chainlink (CRYPTO: LINK), Solana (CRYPTO: SOL), and XRP (CRYPTO: XRP) all registered positive momentum shifts relative to Bitcoin on the 12-week Relative Rotation Graph.
The broader altcoin market is entering a bullish phase, Fairlead noted, with an equal-weight index showing a weekly MACD buy signal for the first time since before the 2024 post-election rally.
For now, analysts see the current environment as balanced, with sufficient long-term holder confidence and a maturing regulatory backdrop providing stability for potential upside follow-through.
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