Article with AI Analysis
Date: 26 August 2025
Source: Adapted from Cointelegraph reporting, AI-enhanced by Hikari Nova
Introduction
Bitcoin’s retreat from its all-time high of $124,500 has sparked nervous questions: was this the cycle peak, or just another shakeout on the road higher? While some traders are shaken, data tells a more hopeful story. None of the major market-top signals have triggered, long-term holders remain confident, and the technical path toward $150,000 is still alive.
Market Signals Show Room to Grow
Analyst Merlijn The Trader notes that all 30 well-known Bitcoin peak indicators remain neutral. In past bull markets, tops only arrived once these tools flashed clear overheating warnings.
Puell Multiple, which tracks miner revenue, sits at just 1.39, far below the overheated levels above 2.2 seen before previous peaks.
MVRV Z-Score, a measure of how stretched Bitcoin’s price is compared to real capital inflows, also sits in a safe range.
This suggests the $124K high was not the cycle top, but rather a healthy checkpoint along the way.
Shakeout Strengthens the Market
Short-term holders especially new buyers holding BTC for less than a month are selling at small losses. At the same time, investors with a stronger cost basis and higher conviction are absorbing these coins.
As analyst CrazzyBlockk explained, “This shakeout, while painful for recent top-buyers, is precisely the kind of event that builds strong support for the next move higher.”
The result? A market transferring Bitcoin into steadier hands, creating the foundation for a more sustainable rally.
Liquidations Clear the Path Forward
$70 million in leveraged long positions were liquidated as Bitcoin dipped below $111,000, wiping out excessive leverage from the market. Open interest and net taker volume on Binance dropped sharply signals that weaker buyers have exited.
Onchain analyst Amr Taha highlights that with open interest reset and no short squeeze triggered, the market is now structurally healthier. The next liquidity cluster sits around $117K–$118K, which could act as a short-term magnet.
The Technical View: EMA Holds the Line
Despite the 12% pullback, Bitcoin remains comfortably above its 20-week Exponential Moving Average (EMA), currently near $108,000. Historically, this level has served as dynamic support during bull markets.
A rebound from here could send BTC back above $125K and open the door to the $150K target. If the 20-week EMA fails, deeper support lies around the 50-week EMA near $95,300.
In other words: the structure of the bull market remains intact.
AI-Powered Sentiment Analysis
Our AI analysis of this article revealed:
sentiment_score: +0.64Overall tone leans optimistic, reflecting long-term growth potential despite short-term volatility.
Financial Sentiment: +1.55Market outlook remains bullish, with structural resets creating healthier conditions for future gains.
Polarity Score: 0.22Language is moderately positive, avoiding extremes but leaning toward upward bias.
Subjectivity Score: 0.38Analysis is grounded in data and technical indicators, with a balanced but confident perspective.
Interpretation: These scores suggest the narrative is cautiously bullish. The market’s reset is seen as a constructive phase rather than a terminal decline, and conditions support further upside if technical levels hold.
Read More
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Disclaimer
This article was generated using AI and reviewed for accuracy. The information presented is for educational purposes only and should not be construed as financial advice. Always consult with a professional before making investment decisions.