Bitcoin (BTC) is showing signs of consolidation after reaching a new all-time high (ATH) of $122,884, but market analysts suggest that another leg higher remains possible before July ends.
BTC Consolidation Expected After Sharp Rally
Following a record-breaking rally earlier this month, Bitcoin is currently hovering around $118,000, pausing to consolidate gains. Michael Harvey, head of franchise trading at Galaxy Digital, noted that âpausing here for airâ is likely given the recent surge.
âConsolidation around current prices is my base case given the large rally and new ATH,â he explained.
This base case scenario reflects a healthy market cooldown, often observed after major price milestones. Despite the short-term pause, Harvey remains bullish on Bitcoinâs longer-term trajectory, anticipating a gradual move higher into year-end 2025.
Slow âMelt-Upâ Could Push Bitcoin to New Highs in July
The best-case scenario, according to Harvey, is a âcontinued slow melt-upâ throughout the remainder of July. Achieving this would depend on:
- Strong inflows into U.S.-based spot Bitcoin ETFs
- Ongoing treasury accumulation by crypto-focused firms
- A notable uptick in retail investor demand
While ETF demand remains strong, retail engagement is mixed. Coinbaseâs rise to No. 137 on the U.S. Apple App Store indicates growing curiosity. However, Google search trends for âBitcoinâ remain muted, hinting that broader retail adoption hasn’t yet fully returned.
BTCâs Key Support and Risk Levels
At the time of publication, Bitcoin is trading around $118,098, per Nansen data. Analysts are closely monitoring key levels:
- Immediate resistance: Previous ATH at $122,884
- Support zone: $112,000 (former May ATH)
- Bear case support: Around $110,000, marking a potential 5â10% pullback
âA risk-off move or equity market weakness could drive a short-term dip below $110,000,â Harvey warned.
Long-Term Outlook Follows Post-Halving Patterns
As crypto cycles often mimic historical trends, analysts like Rekt Capital are eyeing October 2025 as a potential cycle peakâroughly 550 days after the April 2024 halving. This aligns with Bitcoinâs behavior in previous bull markets, notably the 2020 cycle.
Patience Required as Bitcoin Cools Off
Bitcoinâs current price action reflects healthy consolidation, but another all-time high in July remains possible if ETF inflows continue and retail momentum builds. For now, traders should watch key support zones and prepare for both slow gains or short-term volatility.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.