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Bitcoin is facing a pivotal moment as it hovers just below the $123,000 all-time high. While bulls remain in control, price action has stalled beneath this key resistance, exposing a lack of decisive momentum. After a strong 20% rally since late June, the market now waits for a breakout confirmation to extend the uptrend.

Sentiment remains overwhelmingly bullish, driven by increased adoption, legal clarity in the US, and favorable macroeconomic developments. However, recent on-chain and exchange data show a noticeable decline in spot buying pressure. This divergence between sentiment and real demand suggests that bulls may be hesitating to enter at current levels, possibly due to expectations of a correction or profit-taking near the highs.

The price structure remains bullish as long as BTC holds above the $115K support zone, but the inability to break $123K raises concerns about a possible short-term reversal or continued sideways action. For now, Bitcoin’s trend remains intact, but a clear surge in volume and buying activity will be required to reclaim new highs and maintain bullish momentum.

Bitcoin Sentiment Stays Bullish, But Buying Pressure Fades

Top crypto analyst Axel Adler recently shared an update on the Bitcoin Advanced Sentiment Index, offering key insights into the current market psychology. According to Adler, the index currently reads 64%, signaling that sentiment remains solidly bullish. However, he noted a critical caveat: while the market leans toward buying, bulls appear to lack the aggression needed to push Bitcoin decisively above its all-time high of $123,000.

This hesitation is consistent with what’s unfolding in the charts. After a sharp rally of over 20% since late June, Bitcoin is now consolidating in a tight range between $115K and $120K. While this structure suggests strength, the lack of follow-through buying at higher levels reflects caution among investors. It appears that market participants are waiting for a clear catalyst before positioning more aggressively.

The current compression in price action could precede a large move, as periods of low volatility at elevated levels often do. Traders should prepare for a breakout in either direction. While the overall trend and sentiment favor upside continuation, the possibility of a correction remains in play, particularly if sentiment begins to fade or macro conditions shift unexpectedly.

BTC Consolidates Near All-Time Highs

The daily chart shows Bitcoin consolidating just below its all-time high of $123,000, trading at $118,636 at the time of writing. The recent price action suggests strong bullish control, but the lack of a decisive breakout above the $122,077 resistance has introduced short-term uncertainty. The structure remains clearly bullish, with BTC forming higher highs and higher lows since the rebound from the March lows near $97,000.

Notably, Bitcoin is holding well above the 50-day ($109,225), 100-day ($103,913), and 200-day ($97,949) moving averages. These levels now serve as layered support, reinforcing the long-term bullish trend. The ongoing consolidation above $115,724 suggests that bulls are defending this zone with conviction.

However, volume has not followed through as strongly during this consolidation phase, a sign that some market participants are waiting for confirmation before committing new capital. If BTC breaks above $122,077 with strong volume, it could trigger a breakout and price discovery toward higher levels. On the flip side, a break below $115,724 could lead to a deeper retracement toward the 50-day MA.

Featured image from Dall-E, chart from TradingView

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US President Donald Trump has more insults for Federal Reserve Chair Jerome Powell.

At a bill signing ceremony on Thursday, Trump claimed the government would save $600 billion a year in short-term debt payments if Powell lowered the federal funds rate by 2 percentage points.

In May, the Federal Open Market Committee (FOMC) announced that it planned to maintain the target range for the federal funds rate at 4.25-4.5%, arguing that it was the most suitable level to achieve both maximum employment and controlled inflation. The Fed has held interest rates steady since December, when it cut the rate by 0.25%.

Trump says he’s not planning on firing Powell, but he slammed the Fed chair for not adjusting course.

“We’re going to spend $600 billion a year – $600 billion – because of one numbskull that sits there [and says] ‘I don’t see enough reason to cut the rates now.’ And the problem he’s got, and I explained to him… cut your rates now, there’s no inflation. We got it down, we got prices down.” 

Inflation rose by 2.4% in May, according to the Bureau of Labor Statistics. That was slightly less than the 2.5% increase predicted by economists, CBS reports.

Powell met with Trump last month following a barrage of insults from the president. The Fed, however, noted in a statement following the meeting that Powell did not discuss interest rate expectations with the president.

“At the President’s invitation, Chair Powell met with the President today at the White House to discuss economic developments, including for growth, employment, and inflation.

Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook.

Finally, Chair Powell said that he and his colleagues on the Federal Open Market Committee (FOMC) will set monetary policy, as required by law, to support maximum employment and stable prices and will make those decisions based solely on careful, objective, and non-political analysis.”

Trump has repeatedly criticized Powell for not slashing interest rates, saying earlier in May that communicating with the Fed chair was “like talking to a wall.”

“The Bank of England cut. China cut. Everybody’s cutting but him. I don’t know, we’ll see what happens. It’s a shame. I call him ‘Too Late.’ Too Late Powell, that’s his nickname. And it’s a shame, it’s ridiculous… he’s always too late. But in this case, it’s not going to matter that much because our country is so strong, we’re so powerful in terms of economic strength and what we’ve done.” 

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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