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Bitcoin Price Analysis: BTC Nearing Exhaustion or Gearing Up for $130K Next?
By CryptoVizArt
July 14, 2025 –
The bitcoin price has officially entered a new phase of price discovery, as it’s trading just below the $122,000 mark at the time of writing. After months of consolidation and repeated failed breakout attempts, the bulls have finally regained control.
Since breaking out above the previous all-time high around $112,000, Bitcoin (BTC) has exhibited explosive momentum, with investors wondering how much further it will rise.
The daily chart reveals that the asset is still respecting its long-term ascending channel, rebounding from the lower boundary and now rallying toward the mid-line. The price decisively closed above the $112,000 mark, a level that acted as a distribution zone for over a month. Following this breakout, BTC has printed numerous bullish continuation candles, pushing all the way up to $122,000.
However, it’s crucial to acknowledge that the price could potentially pull back into the $114K-$117K range to dissipate some of the exuberance and exhaustion. This correction would not invalidate the overall bullish structure but instead offer a healthier continuation setup. As long as the price remains above the $114K breakout level, the medium-term outlook remains overwhelmingly positive.
The 4-hour chart reveals a clear breakout from the recent range and an impressive near-vertical price expansion, confirming the daily momentum. Post-breakout, Bitcoin formed an impulsive move. Consequently, the RSI is now extremely elevated at 78+, hinting at short-term exhaustion. The chart also highlights newly formed fair value gaps stacked below the current price level, which could potentially attract the asset’s price and act as potential support.
As long as BTC stays above $114K, even dips into this region would be regarded as bullish retests. Moreover, if the cryptocurrency begins to range around the 121K-122K area, it will enable the RSI to cool off while providing fresh momentum for the next breakout without significant correction.
Funding rates have started rising once more, reflecting the surge in long-side leverage after the breakout. This rapid uptick in funding confirms that traders are aggressively pursuing the move. While elevated funding is expected during trend continuations, it also introduces risk: as the leverage imbalance increases, so does the market’s vulnerability to a liquidation-driven pullback.
Historically, when funding rates remain excessively high while prices stall or consolidate, this frequently leads to a liquidation-induced retracement. So far, we haven’t witnessed such a spike like during Q1 2024; however, it is crucial to monitor the situation closely. If Bitcoin fails to push higher as funding stays elevated, a quick correction into the $114K zone becomes plausible.
Until then, the sentiment remains bullish but slightly overheated, aligning with current RSI readings and market structure.
The writer will continue to monitor this situation closely for any signs of exhaustion or potential bearish signals.
Source: cryptopotato.com
