Bitcoin’s recent price action signals a cool-down after its failed attempt to secure a close above the all-time high of $123,000 – $124,000. While a near-term retracement seems likely, the broader market structure remains bullish. This correction could serve as a healthy reset before Bitcoin gains momentum for its next big wave, with $150,000 as the next target.
Heatmap Reveals Key Gaps in Bitcoin’s Support Levels
ZYN, a prominent crypto analyst, recently posted a update at X, highlighting a key observation from the heatmap of Bitcoin’s cost base. The analyst noted that there is limited support between the $121,000 and $120,000 levels, creating a vulnerable zone that Bitcoin could easily slip through if selling pressure increases.
Below that, ZYN pointed out a key area of interest around $117,000, where around 190,000 BTC had previously been purchased. This accumulation zone reflects a strong base of recent buyers and could serve as a crucial level at which market participants can intervene to offset any downside pressure.
If Bitcoin pulls back towards $117,000, the analyst believes it could pave the way for renewed accumulation rather than a deeper correction. Historically, retracements to strong support levels like this have provided fuel for the next leg higher, as both existing and new investors benefit from lower entry points. In summary, ZYN highlighted that while Bitcoin has no meaningful cushioning around $121,000, a solid base appears to be forming at $117,000.
BTC is struggling to stay above all-time highs
In a recent market updateCrypto Candy noted that BTC once again struggled to maintain momentum above its ATH resistance zone between $123,000 and $124,000. The level has proven to be a difficult barrier, with price attempts above it quickly met by selling pressure. As a result, BTC failed to close above this critical area and hold, leading to a retracement that is in line with previous expectations outlined in their analysis.
Currently, this short-term correction is seen as part of a natural and healthy market cycle, and not as a signal of weakness. The analyst noted that if current momentum continues, Bitcoin could fall towards $116,000-$118,000 before strong support is found. This range is seen as a potential accumulation zone where buying interest could reemerge, paving the way for renewed bullish momentum.
Despite the decline, the broader outlook remains optimistic. Crypto Candy reaffirmed a long-term psychological target of $150,000 for Bitcoin, suggesting the current price action is just a temporary pause before the next higher.