Bitcoin Price Eyes $124K Breakout as On-Chain Growth Slows
Bitcoin price is testing the $124,000 resistance level within an ascending channel. Broad market participation, reflected by a declining Age Cohort Concentration Index (HHI), underpins the rally.
Technical indicators remain bullish: the 9-day and 21-day moving averages align positively and the MACD shows upward momentum. However, repeated rejections at the upper channel highlight selling pressure and potential volatility.
On-chain activity is cooling, with mid-August network growth down to 76.8k and daily transactions falling to 81.7k. HODL wave data show a rise in 1–7 day holdings and a drop in 7–30 day holdings, indicating speculative short-term flows. The Binance long/short ratio favors bulls (57% longs), but fading on-chain metrics risk the rally’s sustainability.
Traders should watch for a decisive breakout above $124K and a revival in network activity to confirm the trend.
Neutral
The news presents mixed signals for Bitcoin price. Technical indicators and the Binance long/short ratio favor a bullish breakout above $124K in the short term. However, cooling on-chain activity and repeated price rejections at the resistance level introduce risk and potential volatility. In the long term, sustained gains depend on renewed network growth and stronger transaction volumes. Overall, the report suggests traders should remain cautious and wait for clear confirmation before increasing positions.