Bitcoin 5% Below ATH Shows Cooling Phase Potential

Bitcoin (BTC) is currently trading less than 5% below its all-time high (ATH) of $111,814, recorded in May 2025. The market does not show signs of overheating, instead indicating a cooling phase that suggests potential further price appreciation for the leading cryptocurrency.

According to a recent analysis, Bitcoin’s bubble chart shows that the market is in a cooling phase, with no signs of entering overheated territory. The Bitcoin bubble chart visualizes market conditions using trading volume data, where the size of each bubble represents total exchange volume and the color indicates the rate of volume change. This chart helps identify market phases such as cooling, neutral, heating, or overheating by showing whether volume is increasing, decreasing, or remaining steady.

Despite being close to its ATH, Bitcoin remains in a cooling phase. Historically, BTC tends to show signs of overheating when nearing all-time highs, but this is not the case currently. BTC has been in this cooling phase since its April 2025 bottom of $74,508. Since then, the price has climbed more than 20%, yet the market shows no signs of a speculative peak. This divergence suggests there may still be room for further upside in the near term.

However, breaking past the ATH will likely require favorable macroeconomic conditions, such as interest rate cuts or easing regulatory pressures. The analyst noted that the market has already established a stable foundation, suggesting a strategy of patience, keeping an eye on major market events, and waiting for opportunities seems promising.

Prominent crypto analyst Titan of Crypto shared a chart noting that BTC continues to follow a bullish inverse head and shoulders pattern on the monthly timeframe, eyeing a potential breakout to $125,000. The inverse head and shoulders pattern is a bullish chart formation that signals a potential reversal from a downtrend to an uptrend. It consists of three troughs – a lower low called “the head” between two higher lows called “the shoulders”, with a breakout typically occurring when the price crosses above the “neckline” resistance.

Despite promising technical signals, some on-chain data metrics raise caution. For example, BTC’s apparent demand has been declining steadily since May 2025, suggesting that buyer interest may be weakening. Likewise, the Bitcoin MVRV Ratio is beginning to show signs of bull market fatigue. A flattening MVRV slope can often indicate a slowdown in momentum and caution among investors. At press time, BTC trades at $107,175, down 0.1% in the past 24 hours.

In summary, while Bitcoin is showing signs of cooling without overheating, there is potential for further price appreciation. However, favorable macroeconomic conditions and stable market foundations will be crucial for breaking past the ATH. The inverse head and shoulders pattern suggests a potential breakout to $125,000, but declining demand and bull market fatigue indicated by the MVRV Ratio warrant caution.