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The cryptocurrency market unfolded as a tale of two clearly defined segments, one in which the Bitcoin price surged to numerous all-time peaks. After hitting its all-time zenith of roughly $122,800, the leading cryptocurrency has fallen prey to a sobering wave of bearish momentum over the last few days.
This recent drop in price was triggered by the activity of a Satoshi-era whale on Thursday, July 17. However, the Bitcoin price never appeared likely to exceed the $123,000 mark, and a well-known on-chain analyst on X has detailed the reason behind this.
Is The Leap To $143,000 Still Feasible?
In a recent entry on the social media platform X, Alphractal CEO & founder Joao Wedson discussed why the BTC price couldn’t surpass the $123,000 threshold during its ascent to a new all-time maximum last week. According to the cryptocurrency authority, this apparent waning of momentum may signify peril for the market leader in the short run.
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The reasoning behind this forecast is that the $123,000 zone (or more accurately, $123,370) represents the second Alpha Price level for Bitcoin’s valuation. For context, the Alpha Price is a robust on-chain metric that employs various key indicators to predict where the BTC price is likely to experience support or resistance.
Essentially, the Alpha Price is a threshold that Bitcoin’s price needs to break through and maintain above to progress into the next crucial stage of the bullish cycle. “It starts by assessing the market’s duration in days and uses that to derive the average market capitalization—effectively forming the historical valuation baseline,” Wedson further elaborated about the indicator.
As illustrated in the chart above, the Alpha Price indicator consists of multiple threshold levels, which function like pressure zones. These thresholds indicate areas where investor sentiment is likely to change; lower levels act as support since investors commonly buy to defend their positions, while upper levels indicate heightened selling pressure due to profit-taking.
Wedson pointed out that Bitcoin’s price failing to exceed the second Alpha Price level does not mean that the market peak is in. However, the $123,370 area is a distinct resistance zone, and the BTC price may need to undergo some retracement before ascension to new heights.
Wedson also noted that the Alpha Price level will update on Saturday, July 19, as it’s dynamically modified based on current on-chain transaction flows. Nonetheless, if the Bitcoin price breaks this barrier, a jump above $143,000 could still remain a possibility.
Bitcoin Price Overview
As of this moment, the price of BTC is approximately $117,610, reflecting an over 2% dip in the last 24 hours.
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Featured image from iStock, chart from TradingView
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