Bitcoin’s recent retreat from its $124,500 high has sparked intense debate among investors about whether the market has reached its cycle top. However, comprehensive analysis of key indicators suggests this pullback represents a healthy correction rather than a market peak. Multiple technical and onchain signals point toward continued upward potential for the world’s leading cryptocurrency.
30 Key Indicators Show Bitcoin Price Peak Not Yet Reached
Analyst Merlijn The Trader recently highlighted that none of Bitcoin’s 30 widely followed peak indicators have flashed warning signals. Historically, Bitcoin cycle tops coincide with multiple overheating signals across established onchain tools. The Puell Multiple, which measures miner profitability extremes, currently sits at 1.39—well below the 2.2 danger zone that preceded previous market tops. Similarly, the MVRV Z-Score remains in neutral territory rather than reaching the extreme levels that marked prior cycle peaks.
Market Structure Shows Healthy Capitulation Phase
Onchain data reveals a classic market purification process underway. New Bitcoin investors holding for less than one month are experiencing average unrealized losses of -3.50% and are currently selling their positions. Conversely, short-term holders maintaining positions for one to six months remain profitable with aggregate unrealized gains of +4.50%. This transfer of assets from weak to strong hands typically builds a solid foundation for future price appreciation.
Leverage Reset Creates Healthier Market Conditions
The recent $70 million liquidation of leveraged long positions following Bitcoin’s dip below $111,000 has actually improved market structure. Open interest dropped significantly after this liquidation event, while Binance Cumulative Net Taker Volume plunged by approximately $1 billion. This indicates aggressive sell-side dominance and capitulation among late buyers. The removal of overleveraged positions creates a more stable foundation for future growth.
Technical Analysis Supports $150,000 Bitcoin Price Target
Bitcoin’s weekly chart reveals a typical bull market correction pattern rather than a market top formation. The current 12% decline remains relatively shallow compared to the 20-30% drawdowns experienced during the 2023 rally. Critically, Bitcoin continues trading above the 20-week exponential moving average near $108,000, which has served as dynamic support throughout this bull run. A rebound from this level could propel Bitcoin toward challenging its all-time high above $125,500.
Key Support and Resistance Levels to Watch
The next significant liquidity cluster resides around $117,000-$118,000, which could act as a price magnet during recovery. Below current levels, limited support exists until approximately $105,000. The 50-week exponential moving average near $95,300 represents a crucial support level that has historically marked local bottoms during previous bull market pullbacks. Maintaining above the 20-week EMA keeps the path open toward the $150,000 technical analysis target.
Frequently Asked Questions
What are the key indicators suggesting Bitcoin hasn’t peaked?
All 30 peak indicators remain neutral, with the Puell Multiple at 1.39 (below 2.2 danger zone) and MVRV Z-Score in neutral territory, unlike previous cycle tops.
How are different investor groups reacting to the pullback?
New investors (holding less than one month) are capitulating with -3.50% losses, while short-term holders (1-6 months) remain profitable at +4.50%, indicating strong hands accumulation.
What technical levels are crucial for Bitcoin’s next move?
The 20-week EMA near $108,000 provides dynamic support, while $117,000-$118,000 represents the next liquidity cluster. A break below $95,300 (50-week EMA) would signal deeper correction.
Why did the recent leverage liquidation help market health?
The $70 million long liquidation reset open interest and removed overleveraged positions, creating a structurally healthier market with reduced speculative excess.
What is the significance of the $150,000 price target?
This target represents the next major technical objective based on historical bull market patterns and current indicator alignment, suggesting potential 20%+ upside from current levels.
How does current pullback compare to previous corrections?
The 12% decline is relatively shallow compared to typical 20-30% bull market corrections, indicating stronger underlying support and investor confidence.
