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ToggleMany current on-chain indicators are showing that Bitcoin's (BTC) market structure remains strong, and the current price increase cycle still has room to continue expanding.
After setting a near-record high of around $123,000 last week, BTC is currently trading below $120,000. While some investors are concerned about potential correction, most analysts believe the market has not yet reached its peak.
Here are the main reasons supporting the view that Bitcoin's price increase is still ongoing.
Bitcoin's Fundamental Factors Remain Strong
Bitcoin on-chain analysis company Vector notes that although Bitcoin's growth momentum is slowing down, many fundamental indicators still show that the current price increase cycle has not ended. "Momentum may be decelerating, but the market structure and fundamentals remain very solid," the company shared in a Tuesday post on X.
"This is not the peak. This is an accumulation phase with a strong support layer below." – One highlight is that the Bitcoin Fundamental Index (BFI) continues to maintain a high level, reflecting stable network growth and improved liquidation.
Vector Bitcoin explains that although BTC's price has been "compressed" recently, the fundamental factors have not weakened but are just temporarily pausing for adjustment. "Price needs to catch up with these fundamental factors," the company emphasized.
In the short term, investors seem to be waiting for confirmation signals for a breakout, as Bitcoin continues to play the role of a "structural peg" leading the entire cryptocurrency market, according to the asset management company Swissblock: "Bitcoin is maintaining technical structure → Risks are controlled. Fundamental factors still support → But momentum is weak. Institutional investors are cautious → Capital is circulating. BTC remains the base layer → But altcoins are providing better yields. This is not the peak – but a transition phase."
Meanwhile, Bitcoin maintains its price increase structure, despite consolidating in a narrow price range from $116,500 to $120,000 since July 15. Bitcoin Vector further notes: "No significant drop. No explosive increase. The market is just waiting to 'detonate'. When momentum appears, the growth wave will continue."
On-Chain Indicators Suggest "Room for Expansion"
Regarding the cost basis of short-term holders (STH), Swissblock analysis company notes that buying pressure from the STH group is still maintained and shows no signs of exhaustion. Specifically, the STH cost basis – representing the average purchase price of Bitcoin investors holding for less than 155 days – approached the "hot" zone on July 14, coinciding with BTC's near-ATH of $123,000.
However, this indicator has not yet entered the overheated zone, reflecting that market sentiment remains relatively healthy. Swissblock notes that if the price continues to rise to retest the upper peak zone, corresponding to two standard deviations above the actual price of the STH group, Bitcoin could target a new ATH around $138,000.
"Profit-taking is occurring, but the risk zone for STH at 138K has not been activated," Swissblock shared, and emphasized: "This indicates there is still room for growth before the market faces a panic sell-off or excessive euphoria."
30 Bitcoin Price Indicators Show "Hold 100%"
Although Bitcoin is in a consolidation phase below its all-time high (ATH), current technical signals do not show signs of overheating or market peak. According to data from CoinGlass, 0 out of 30 price increase peak indicators have been triggered, indicating no long-term sell signals are currently being issued.
These indicators are designed to determine when BTC is likely to touch its peak in a prolonged growth cycle. "0/30 peak signals are being triggered on CoinGlass's Bitcoin Price Increase Peak Dashboard," CryptosRus shared on X on Monday.
CryptosRus also specifically emphasized four long-term indicators including:
- Pi Cycle Top
- Market Value to Realized Value (MVRV)
- Relative Strength Index (RSI)
- Reserve Risk
According to him, all four indicators are currently at "healthy" levels, not suggesting an imminent price peak.
"In the past, the more boxes in this list were activated, the closer we got to the cycle peak. Now? All are green lights." Currently, according to CoinGlass classification, Bitcoin is rated as a "100% hold" asset - reflecting strong confidence from technical indicators that the price cycle still has room to continue climbing.
This article does not contain investment advice or recommendations. All investment and trading activities carry risks, and readers should conduct their own research when making decisions.
