Bitcoin Inches Closer to ATH, Needs Breakout Above $ 120K Resistance

VISI.NEWS | CRYPTO - Bitcoin recently hit a new all-time high (ATH) before experiencing a brief pullback as the market heated up. Despite the dip, Bitcoin has largely stabilized, thanks in part to strong inflows into spot Bitcoin ETFs. These institutional investments signal growing confidence in Bitcoin’s long-term potential and could help propel its price past its previous ATH soon. NVT Ratio Suggests Potential for a Rebound Earlier this month, Bitcoin’s Network Value to Transaction (NVT) ratio spiked, mirroring a similar surge seen in June. This ratio compares the network’s market capitalization to its transaction volume. A high NVT typically signals that the asset is overvalued relative to on-chain activity—often a precursor to a correction. Indeed, Bitcoin did pull back briefly as the market cooled. However, the NVT has since dropped to its monthly lows, indicating room for a potential rally. ETF Inflows Show Strong Institutional Support Over the past week, spot Bitcoin ETFs saw over $1.5 billion in inflows, most of which came within just 48 hours during Bitcoin's recent dip. This surge in institutional buying suggests that large investors remain confident in Bitcoin’s prospects despite short-term volatility. Continued demand from ETFs could provide the stability needed for Bitcoin to push higher. Bitcoin Approaches Critical Resistance Levels At present, Bitcoin is trading at around $118,325 and facing a key resistance level at $120,000. A sustained breakout above this threshold could pave the way for a retest of its ATH at $123,218. With only a 4.1% gap remaining to reach the ATH, the current momentum, supported by ETF inflows, increases the likelihood of an upward breakout. Risks Remain Despite Bullish Momentum However, there’s still a risk of profit-taking, which could trigger a downward move. If selling pressure increases, Bitcoin might drop back to the $115,000 level, erasing recent gains and potentially invalidating the bullish outlook. A failure to hold support could prompt a retest of lower levels. @ffr