Bitcoin’s Potential Rally According to Swissblock

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 recent thread on X, Swissblock mentions that the top crypto asset by market cap just needs to flip its momentum to reverse course and possibly spark a rally, likely taking altcoins with it.

> “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.”

Swissblock notes that Bitcoin was on the verge of breaking out before its momentum stalled due to profit-taking by investors.

> “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 analytics firm adds that Bitcoin’s performance is still enticing for investors, with the overwhelming majority of BTC holders in profit.

> “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 stating that BTC’s fundamental technical indicators look healthy, suggesting it should trade sideways for some time before igniting 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.”

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