- Bitcoin breaks key resistance with a 7% weekly gain and a volume of $147.9 billion.
- Fibonacci extensions show resistance ahead at $127K and $135K if strength continues.
- Exchange deposits hit 22,230 BTC on July 14—the lowest level recorded in several years.
Bitcoin kicked off the week with fresh momentum and a sharp price push that’s turning heads across the crypto market. After shattering its former all-time high of $112K last Thursday, it continued its bullish momentum to reach a new ATH of $123,090 on Monday.
Though the price has pulled back, Bitcoin is trading around $117,000 as of press time. BTC’s market cap reached 2.32T, and its 24-hour trading volume has skyrocketed by over 45.53% to $147.9 billion, which is a clear signal that both traders and institutions are charging back into the market with renewed enthusiasm. But the real question now is: With this much momentum building up, how high can Bitcoin go before the week is out?
Technical Map Shows BTC’s Path to $135K
Bitcoin’s technical indicators are aligning with the current bullish momentum, suggesting that this rally may be far from over. On the weekly chart, the BTC token just broke out of a second descending channel—almost identical to the one it escaped earlier this year. That prior breakout delivered a 31% rally, and this new breakout is already following the same playbook.
After reclaiming its former all-time high near $112K, Bitcoin now trades above $121,000, firmly above a key resistance-turned-support zone. The symmetry between the two breakout structures suggests a repeating pattern, and if history rhymes, another 31% leg up could be unfolding.
Looking at the Fibonacci extension levels, BTC has already cleared the 127.2% mark at $122,180, already marking 11% of this rally. The following primary targets are $127,510 at the 141.4% level and $135,167 at 161.8%. Besides, should momentum hold, a full run toward the 200% extension at $149,500 is well within reach.
Adding to the bullish setup, the RSI is currently sitting at 71.61—technically in overbought territory. However, in strong bullish markets like the one Bitcoin is showing now, the RSI can remain elevated for extended periods.
This suggests that while momentum is high, the rally might still have room to stretch further before any meaningful cooling off occurs. With technicals lining up, volume surging, and BTC repeating a proven breakout pattern, the path to $127K—$135K looks not just possible but probable.
Sellers on the Sidelines as BTC Rallies
Adding further fuel to the bullish narrative, on-chain data from CryptoQuant reveals a sharp decline in Bitcoin exchange depositing transactions. As of July 14, only 22,230 BTC were sent to exchanges—the lowest level recorded in years. Historically, higher deposit activity (especially on spot exchanges) is often linked with selling pressure.
However, a drop of this magnitude signals something else entirely: Instead of prepping to sell, holders seem content to sit back and watch the rally unfold. This behavior aligns perfectly with the intense price action seen this week. As BTC rallies past $122K, the lack of coins moving to exchanges suggests that investors are anticipating even higher prices ahead.
It’s a classic sign of market confidence when traders opt to store their assets rather than prepare to cash out. This behavior flips the usual “sell-the-peak” script. Rather than a flood of profit-takers, the cryptocurrency is seeing a wave of restraint, possibly signaling the rise of a more mature, long-term-focused market. As deposits dwindle and prices climb, it feels less like a peak and more like a launchpad.
All Eyes on Bitcoin: Bets Pile Up as Leverage Surges
From another angle, Bitcoin’s derivatives market is also showing signs of intensifying activity. According to crypto analyst Ali, open interest across all exchanges has climbed to $40.2 billion, marking its highest level in over a year. The data, sourced from CryptoQuant, points to a wave of fresh speculation and growing leverage, which are clear signs that traders are placing bigger bets on Bitcoin’s next move.
The chart shows a steady rise in open interest since late 2024, nearly doubling from under $20 billion to its current peak. This growth has mirrored Bitcoin’s price action, reinforcing the view that traders aren’t just observing the rally—they’re actively backing it with capital.
Ali highlights this surge as a reflection of rising market conviction. While it adds fuel to the bullish momentum, it also raises the stakes. In highly leveraged environments, price swings can trigger sharp liquidations, amplifying volatility.
Bitcoin Technicals Point to Continued Uptrend
The MA Ribbon on the weekly chart shows a perfectly aligned bullish stack. The current price stands significantly above all major moving averages at:
- 20-MA: $98,092
- 50-MA: $88,248
- 100-MA: $69,156
- 200-MA: $50,262
Each layer of the ribbon fans out cleanly, with shorter-term MAs above longer-term ones—classic signs of a well-established uptrend. However, should the price retrace, these moving averages, especially the 20 and 50-day, will act as the first lines of support.
With BTC sitting nearly $22,000 above the 20-week moving average, this kind of distance suggests a short-term correction wouldn’t break structure but could retest these levels without derailing the trend.
Beneath the surface, the Directional Movement Index (DMI) confirms the story. The +DI (blue) line is currently at 29.4654, far above the -DI (orange) at 12.2573, showing that buyers are dominating. Besides, the ADX (pink) has now surpassed the key 25 threshold, currently trading at 26.5314 — signaling that a strong trend is underway. This confirms growing momentum and suggests that the current price direction is gaining strength.
Related: Bitcoin Surges to New ATH as Rising BTC Dominance Drains Altcoins
Conclusion
Bitcoin’s breakout above $123K is not just a price milestone—it’s a convergence of powerful technical signals, bullish on-chain metrics, and surging market participation. With exchange deposits at historic lows, leverage at record highs, and trend indicators flashing green across the board, the setup strongly favors continued upside.
While short-term pullbacks remain possible, the broader structure suggests BTC is in the midst of a robust, well-supported rally. As traders eye the next targets at $127K, $135K, and potentially even $149K, the market narrative is clear: bullish momentum is building, and Bitcoin’s upward trajectory is far from over.
