Bitcoin Consolidates Above $120,000, Analyst Sees Bullish Continuation

Bitcoin's growth rate indicator suggests a bullish continuation despite a brief pause in upward momentum. The digital asset is consolidating above a major psychological level, and market participants are optimistic about the next leg of the move. Improving macroeconomic clarity and institutional interest support the trend, and the introduction of the GENIUS Act in the US is setting a foundation for long-term growth in the crypto sector.

Bitcoin's recent price action has continued its upward trajectory, with the asset trading above the $120,000 mark in the past 24 hours. This move suggests persistent bullish momentum following a period of sharp decline earlier this week. As the price inches closer to its all-time high, on-chain data is painting a picture of solid transactional support behind the price movement [1].

One notable observation comes from CryptoQuant analyst Sunflowr Quant, who highlighted a divergence between Bitcoin’s market value and its underlying network activity. The NVT Golden Cross indicator, which typically rises in tandem with price due to its function as a ratio between market cap and transaction volume, is currently declining. Sunflowr attributes this to a significant uptick in on-chain activity, suggesting that the current rally is driven more by actual usage and real transactions on the Bitcoin network rather than speculative trading [1].

This inverse correlation between the rising BTC price and falling NVT Golden Cross may indicate that the current rally is supported by real economic activity. Healthy on-chain growth can serve as a foundation for more sustainable price increases. If transaction volumes are growing organically and not solely from derivatives speculation, it suggests that user adoption and financial utility are contributing to the price strength [1].

Bitcoin’s recent pullback after reaching an all-time high highlights a typical profit-taking phase, with technical indicators pointing to potential buyer support near $113,000 [2]. Market analysts emphasize that the inverse head-and-shoulders pattern could signal a bullish continuation if key support levels hold. The price is currently testing critical support around the $113,000 level, corresponding with the neckline of an inverse head-and-shoulders pattern—a technical formation often signaling a bullish continuation [2].

Institutional and retail demand remains robust, with treasury companies purchasing over 159,000 BTC in Q2 alone and retail investors collectively acquiring around 19,300 BTC monthly—outpacing the new supply of roughly 13,400 BTC generated post-April 2024 halving. This persistent demand from diverse market participants provides a strong foundation for price stability and potential upward momentum [2].

The introduction of the GENIUS Act in the US is setting a foundation for long-term growth in the crypto sector. President Donald Trump will sign the GENIUS Act at 2:30 PM ET in the White House today, which marks the first comprehensive crypto regulation passed by the U.S. The GENIUS Act focuses on stablecoin oversight, setting strict reserve backing requirements and licensing eligible issuers—including banks, fintech firms, and credit unions [3].

If the legislation includes clear rules and opens the door for institutional adoption, digital assets could rally. On the other hand, clauses that increase compliance costs or limit innovation might trigger a downturn—especially for stablecoin issuers and DeFi platforms. Meanwhile, bond markets show minimal movement, but analysts warn they could rise if the law includes clauses that influence fiscal strategy or market liquidity [3].

Bitcoin's current correction is a typical post-all-time high adjustment, supported by strong institutional and retail demand that may limit downside risk near $113,000. Technical patterns and moving averages suggest that if key support levels hold, BTC could resume its upward trajectory toward $150,000. However, traders should monitor critical support zones closely, as breaches below $110,530 could signal a more prolonged consolidation phase [2].

References:
[1] https://www.tradingview.com/news/newsbtc:eecf842b6094b:0-bitcoin-climbs-but-nvt-indicator-sends-a-surprising-signal/
[2] https://en.coinotag.com/bitcoin-may-find-support-near-113000-amid-post-all-time-high-correction-charts-suggest/
[3] https://coinedition.com/trump-genius-act-signing-crypto-week-climax/