Bitcoin Rally Cools as Traders Eye $121K Buy Zone Before $150K Run

Bitcoin’s explosive rally may have further to run, but according to prominent analyst Michael van de Poppe, the market needs to take a breather before pushing higher. The veteran trader shared a cautiously optimistic outlook, suggesting that Bitcoin could correct before surging toward the much-anticipated $150,000 mark.

“I don’t think Bitcoin will blast through the all-time high in one go,”

Van de Poppe’s BTC chart on KuCoin’s 6-hour timeframe shows a textbook breakout from consolidation, followed by a steep vertical rise to around $123,936.

The surge from below $112K to current levels indicates overheating in the short term. The Relative Strength Index (RSI) hovers near overbought territory, also hinting at possible exhaustion.

The analyst marked $119,500 to $120,000 as the ideal dip-buy range, a former resistance zone that may now flip into support. If selling extends, deeper support layers sit near $116,800, $114,755, and $111,918, all viewed as potential springboards for the next rally leg.

CryptoQuant that Bitcoin’s Market Buy Volume recently surpassed $25 billion, a threshold that historically signals potential inflection points, often preceding trend reversals.

Whenever Market Buy Volume reaches $25B, the market tends to be overheated. In downtrends, this figure often marks a buying opportunity; in uptrends, it can serve as a warning that prices may be due for a cooldown.

Meanwhile, CryptoQuant also a negative divergence between Bitcoin’s price and its network activity. Despite record prices, the 14-day moving average of active addresses has dropped to its lowest point since April 2020.