As funding rates remain cool – Bitcoin rebound – signs of a bull market maturity?

Bitcoin is once again at a critical moment of trading as it flirts with an all-time high (ATH), but this time, the usual euphoria is missing. The asset has soared more than 40% since early April, pushing towards $109,000, but market sentiment is unusually cautious. Investors seem to be more reserved than tending to accompany the typical hype and FOMO waves of such rallies, indicating potential uncertainty and fear of potential pullbacks.

Despite the quiet tone, the chain signal indicates something more constructive. According to CryptoQuant’s latest insights, Bitcoin’s current rally shows the characteristics of a healthier bull market. Unlike previous rebounds, this rebound is not accompanied by an overheated funding rate. More importantly, Binance’s market purchase volume is trending downward, indicating that price growth is not driven by excessive leverage or short-term speculation.

This difference between price intensity and market sentiment splits analysts. While some expect a breakout and continue to make price discoveries, others warn that the review may be approaching. One thing is clear: Bitcoin is coiling around major initiatives – whether it’s new highs or shaking, the next few days will be decisive.

Bitcoin test resistance points to healthier rally

After a turbulent weekend, Bitcoin is currently fighting key supply levels, which has pushed the price to $107,000 and then quickly brings more than 4% of demand into the lower demand zone. This sharp move has sparked caution across the market, with many analysts now calling for a potential pullback. As Bitcoin hovers around the psychologically important $100,000 level, the Bulls must defend this area to maintain the current bullish structure and avoid further drawbacks.

Resistance remains strong between $105,000, while previous ATH is around $109K, liquidity clusters may absorb buying pressure or trigger explosive breakthroughs. However, based on new insights into crypto literacy, the nature of the assembly is very different from previous cycles.

In previous bull runs, each new ATH followed by an overheated funding rate and positive market purchases, which are indicators of short-term speculative surplus. These trends are always corrections to reset the market. However, this time the capital rate is still moderate, and the binary buying volume is declining. Although this may be a weak momentum on the surface, it may actually be a sign of a more stable and sustainable gathering.

Unlike the overheating stages in the past, the market now looks lighter and more cautious. Despite short-term volatility, purchases have shown a steady upward trend since 2023, indicating continued interest among long-term participants. This potential strength suggests that Bitcoin still has room to grow and may be more durable for the price, as long as it sells for $100,000.

Price action showing volatility in breakthrough attempt

Bitcoin is currently trading at close to $105,000, and after a brief spike in $107,000 driven by a volatility, Bitcoin consolidated. On the 4-hour chart, BTC has a range of between $103,600 and $105,500, with the visible support of $103,600, a level that is a springboard for multiple elastic boards in recent days. The price structure indicates a potential breakthrough attempt, but failure to maintain current levels could result in a $100,000 retest.

The simple and exponential moving averages (SMA and EMA) of 200 cycles continue to tilt upward, reflecting the intensity of the ongoing uptrend. It is worth noting that BTC is still well above the two indicators – SMA is close to $96,600 and EMA is about $97,600 – indicating that the macro trend is currently unchanged.

The number during the merger period dropped slightly, suggesting that traders are waiting for confirmation before positioning. A breakout above the local highs is nearly $107,000, which may open the door to price discovery and approach $109,000 to an all-time high. But if BTC loses $103,600 in support, bearish momentum may be established quickly.

Featured images from DALL-E, charts from TradingView

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