Bitcoin News Today: Bitcoin Drops 2% After Failing to Break $123,000 Resistance

Bitcoin's price has experienced a significant shift in the past week, with the cryptocurrency initially soaring to multiple all-time highs before succumbing to bearish pressure. The premier cryptocurrency reached an all-time high of around $122,800, but this momentum was halted by a series of events, including the movement of a Satoshi-era whale on July 17. This downward pressure has led to a sobering correction in the market, with the price of Bitcoin failing to break the $123,000 level.

According to Alphractal CEO and founder Joao Wedson, the failure of Bitcoin to breach the $123,000 level can be attributed to the Alpha Price indicator. The Alpha Price is a powerful on-chain indicator that uses several key metrics to estimate where the BTC price is likely to find support or resistance. The $123,370 region is the second Alpha Price level, which acts as a significant resistance zone. This level is crucial because it represents a threshold that the price of Bitcoin needs to breach and stay above to enter the next significant phase of the bull cycle.

Wedson explained that the Alpha Price indicator is calculated by determining the market’s age in days and using that to derive the average market cap, essentially the historical valuation baseline. The indicator has multiple threshold levels that behave like pressure regions, reflecting zones where investor sentiment is likely to shift. Lower levels act as supports because investors often buy to defend their positions, while upper levels signal increased selling pressure due to profit taking.

Despite the failure to breach the second Alpha Price level, Wedson noted that this does not necessarily imply that the market top is in. However, the $123,370 region is a clear resistance zone, and the BTC price might need to face some pullback before climbing to new highs. The Alpha Price level will update on July 19, as it is dynamically adjusted based on real-time on-chain transaction flows. If the Bitcoin price does break this level, a move to above $143,000 could still be on the cards, according to the analyst's forecast.

As of the latest update, the price of BTC stands at around $117,610, reflecting an over 2% decline in the past 24 hours. This correction highlights the volatility and uncertainty in the cryptocurrency market, where sudden shifts in sentiment can lead to significant price movements. The failure to break the $123,000 level underscores the importance of on-chain indicators and the need for investors to stay informed about market dynamics.