The cryptocurrency market recently experienced two contrasting phases, with Bitcoin reaching several new peaks. After hitting a record high of approximately $122,800, the leading digital currency faced a notable downturn over the last few days.
This recent decline was triggered by activity from a long-dormant whale on Thursday, July 17. Despite this, Bitcoin never came close to breaking the $123,000 barrier, and a well-known on-chain analyst on X has shed light on the reasons.
Could Bitcoin Still Hit $143,000?
In a new X post, Joao Wedson, CEO and founder of Alphractal, elaborated on why Bitcoin couldn’t breach the $123,000 mark during its recent rally. The crypto analyst suggests that this apparent loss of momentum could pose short-term challenges for Bitcoin.
The reasoning behind this forecast is that the $123,000 area (specifically $123,370) serves as the second Alpha Price level for Bitcoin. The Alpha Price is a potent on-chain tool that leverages various metrics to predict where Bitcoin might encounter support or resistance.
Essentially, the Alpha Price is a threshold Bitcoin needs to surpass and maintain to advance into the next significant bull cycle phase. “It starts by calculating the market’s age in days and uses that to determine the average market cap—the historical valuation baseline,” Wedson explained about the indicator.
The chart above illustrates that the Alpha Price indicator includes several threshold levels acting as pressure points. These thresholds signify zones where investor sentiment might change; lower levels serve as support as investors typically buy to protect their investments, while higher levels indicate increased selling pressure due to profit-taking.
Wedson pointed out that Bitcoin’s inability to pass the second Alpha Price level does not mean the market peak has been reached. However, the $123,370 area is a definite resistance point, and Bitcoin may need to experience a pullback before reaching new highs.
Wedson also noted that the Alpha Price level will be updated on Saturday, July 19, as it adapts dynamically based on current on-chain transaction data. Nonetheless, if Bitcoin manages to surpass this level, a rise above $143,000 remains a possibility.
Current Bitcoin Price Overview
At the time of writing, Bitcoin is priced at approximately $117,610, marking a decline of over 2% in the last 24 hours.
