Bitcoin (BTC) is approaching its all-time high (ATH) of $109,000 with unusual caution from the market.

The cryptocurrency has gained over 40% since early April, reaching as high as $107,000 before experiencing a pullback to around $105,300.

Bitcoin (BTC) is approaching its all-time high (ATH) of $109,000 with unusual caution from the market. The cryptocurrency has gained over 40% since early April, reaching as high as $107,000 before experiencing a pullback to around $105,300.

What makes this rally different from previous ones is the absence of extreme euphoria and overheated market indicators.

Technical analysis reveals that Bitcoin has been trading within a parallel channel pattern for the past few months. This pattern emerges when an asset consolidates between two parallel trendlines. Currently, BTC is testing the upper line of this channel, which has previously acted as a resistance point.

Several technical indicators suggest momentum might be stalling. The Relative Strength Index (RSI) shows divergence from the price action. While Bitcoin’s price has continued climbing, the RSI formed a smaller peak compared to its earlier high in the month. This type of divergence is often interpreted as a bearish signal.

The Moving Average Convergence/Divergence (MACD) indicator displays another concerning pattern. Recently, the MACD line dipped below the signal line, creating what traders consider a bearish crossover. This technical development adds to the cautious outlook for Bitcoin’s immediate price direction.

A Maturing Bull Market?

Despite these warning signs, on-chain data from CryptoQuant suggests this rally may be healthier than previous bull runs. In past cycles, each new all-time high was typically accompanied by overheated funding rates and aggressive market buying volume, indicating short-term speculative excess.

This time, however, funding rates remain moderate, and Binance’s buy volume is actually trending downward. While this might appear as weak momentum at first glance, it could indicate a more stable and sustainable rally.

Buy volume has shown a steady uptrend since 2023, suggesting continued interest from long-term participants rather than short-term speculators. This underlying strength hints that Bitcoin still has room to grow if key support levels hold.

The cryptocurrency is currently battling key supply levels after a volatile weekend. The price briefly touched $107,000 before quickly retracing over 4% into lower demand zones. This sharp move triggered caution across the market, with many analysts now considering the possibility of a pullback.

Support and resistance levels have formed a tight range. On the 4-hour chart, Bitcoin is consolidating between $103,600 and $105,500, with visible support at $103,600—a level that has acted as a springboard for multiple bounces recently.

The overall price structure suggests a potential breakout attempt, but failure to hold current levels could lead to a retest of the psychologically important $100,000 mark. Bulls must defend this zone to maintain the current bullish structure and avoid further downside.

Both the 200-period simple and exponential moving averages continue sloping upward, reflecting the strength of the ongoing uptrend. Bitcoin remains well above both indicators—the SMA near $96,600 and the EMA around $97,600—showing that the macro trend remains intact for now.

Trading volume has declined slightly during this consolidation period, suggesting that traders are waiting for confirmation before positioning themselves. A breakout above local highs near $107,000 could open the door to price discovery and a run toward the all-time high near $109,000.

However, if Bitcoin loses $103,600 support, bearish momentum could quickly build, potentially triggering a deeper correction.

The next few days will be decisive for Bitcoin’s short-term price action. With the cryptocurrency coiling for a major move, the market remains divided on whether to expect a breakout to new highs or a shakeout.

Bitcoin’s current price at $105,300 represents a critical juncture as it approaches the previous all-time high of $109,000.