Bitcoin’s Price Action and On-Chain Support: A Closer Look

Bitcoin’s Key On-Chain Support Level

Bitcoin’s recent price action has brought focus to a critical on-chain support level near $117,000, following a notable rally from $110,000 to $117,000 that established a low-density accumulation zone. This area, characterized by minimal transaction volume and historical accumulation, has become a pivotal zone for the cryptocurrency. Despite reaching an all-time high of $122,600 in July 2025, Bitcoin has managed to stay above the $117,000 mark, indicating its significance as a short-term support level. Analysts, however, warn that a breakdown below this threshold could potentially trigger a rapid decline due to the lack of historical buying pressure in that range.

Technical Indicators and Market Sentiment

Technical indicators reveal a delicate balance in the Bitcoin market. While the relative strength index (RSI) remains neutral just below 60, shorter-term moving averages like the 10-day EMA and SMA are bearishly positioned above the price. On the other hand, longer-term trends, including the 50-, 100-, and 200-day moving averages, continue to support an upward trajectory. Additionally, on-chain data from CryptoQuant’s Flow Pulse indicator suggests that large holders are not liquidating assets, contrasting with previous peaks where aggressive selling was observed.

Immediate Outlook and Market Context

Bitcoin’s immediate future hinges on key price levels. A retest of $120,000 could propel the price towards $122,000–$124,000, challenging the previous all-time high. Conversely, a drop below $115,000 would lead to a test of deeper support near $111,000. Market sentiment remains mixed, with indicators pointing to both bullish momentum and potential short-term corrections. Regulatory developments, such as the recent passage of the GENIUS Act, have also impacted Bitcoin’s price action, while Ethereum has shown relative strength in the market.

Bitcoin’s standoff at $117,000 underscores the complex interplay between institutional demand, technical constraints, and market sentiment. While long-term indicators lean towards bullish outcomes, short-term risks are tied to on-chain activity and price movements at critical levels. Analysts advise caution, particularly for new investors, until clearer market signals emerge.