Bitcoin News Today: Bitcoin stabilizes at $117,546 as signs of overheating ease ahead of potential 2025 rally

Bitcoin appears to be emerging from a short-lived overheating phase, with analysts suggesting the market may be setting up for a potential rally in the second half of 2025. After a recent rejection at the $120,000 level, the cryptocurrency has stabilized around $117,546 and is showing signs of cooling, according to data and analysis from key market observers.

CryptoQuant contributor Crypto Dan noted that the short-term holding cohort—BTC held for one day to one week—is showing successively lower spikes, indicating that the market’s overheated conditions are easing[1]. The analyst compared the current environment to previous overheating periods in 2024 and 2025, which lasted longer and were more intense. In contrast, the current overheating phase is shorter and less severe, and the recent price increase—while significant—has been relatively modest, which could lead to a milder and shorter correction[1].

The price of Bitcoin surged from around $108,000 on July 1 to a record high of $123,128 on July 13 before consolidating[1]. Titan of Crypto, a veteran analyst, highlighted that the cryptocurrency is currently “in a pressure cooker,” with Bollinger Bands tightening and volatility shrinking. The Relative Strength Index (RSI) is also compressing, a typical precursor to a breakout[2].

Another analyst, Ali Martinez, pointed to the Cumulative Value Days Destroyed (CVD) metric as a bullish sign, projecting that Bitcoin’s next top could reach $149,679. The CVD metric is used to assess whether buyers or sellers are dominating trading volume over time, and a positive trend could suggest increasing buyer control[2].

Despite the bullish signals, some caution is warranted. Bitcoin exchange reserves recently hit a one-month high, suggesting that some holders may be preparing to sell, which could put downward pressure on the price. As of the latest data, Bitcoin trades at $117,546, down slightly by 0.4% in the past 24 hours.

Sources:

[1] https://www.newsbtc.com/bitcoin-news/bitcoin-overheating-signals-second-half-rally/