Bitcoin Preparing for a Breakout After Momentum Turns Negative, Says Analytics Firm – Here’s the Outlook

New data from the crypto analytics firm Swissblock suggests that Bitcoin ( BTC ) is gearing up to skyrocket even as its momentum turns negative.

In a new thread on the social media platform X, Swissblock says the top crypto asset by market cap just needs to flip its momentum in order to reverse course and spark a rally, likely taking altcoins with it if it does.

“Profit-taking is fading and selling pressure is being absorbed. BTC is preparing for breakout – but momentum needs to align. While BTC grinds sideways, watch for the moment it flips – [Ethereum] and altcoins will likely explode upward when it does.”

According to Swissblock, the crypto king was about to break out before its momentum stalled due to investors taking profits.

“What’s going on with Bitcoin? Momentum has failed to ignite. BTC attempted to break higher – but the rally stalled above $118,000, and momentum flipped back to negative…

Why is momentum stalling? Profit-taking is rising – but not as intense as late 2024. Realized profits grew during July, enough to cap upside and trigger consolidation. Selling pressure is visible, but not extreme – think cooling, not capitulation.”

The crypto analytics firm goes on to say that the flagship digital asset is tempting investors with profits, as the overwhelming majority of BTC holders are in the green.

“96% of supply is in profit. That’s a double-edged sword: Strong holders remain but unrealized gains are tempting sellers. Until demand returns, each bounce invites supply. The trend is intact – but momentum needs a reset.”

Swissblock concludes by noting that BTC’s fundamental technical indicators look healthy, meaning that it should trade sideways for a while before sparking a rally to the upside.

“BTC fundamentals are strong and stable. BFI (Bitcoin Fundamental Index) = 60 (neutral zone). Network Growth is cooling. Liquidity is recovering. This is a consolidation-supportive environment. BTC can grind sideways longer – until it’s ready to break with conviction.”

BTC is trading for $114,747 at time of writing, a 3% decrease on the day.

Featured Image: Shutterstock/Mia Stendal/Konstantin Faraktinov