Bitcoin Bubble Chart Signals Cooling Without Overheating - Breakout Coming Soon? | Bitcoinist.com

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure While Bitcoin (BTC) trades less than 5% below its all-time high (ATH) of $111,814, recorded in May 2025, there are currently no signs of market overheating. On the contrary, the BTC market appears to be cooling, suggesting further price appreciation could be on the horizon for the leading cryptocurrency.

Bitcoin Bubble Chart Signals More Room For Growth

According to a recent CryptoQuant Quicktake post by contributor Crypto Dan, Bitcoin’s bubble chart indicates the market is currently in a cooling phase, with no signs of entering overheated territory.

Related Reading: Bitcoin Reclaims $107,000, But MVRV Ratio Flags Bull Market FatigueFor the uninitiated, the Bitcoin bubble chart visualizes market conditions using trading volume data, where the size of each bubble represents total exchange volume and the color indicates the rate of volume change. It helps identify market phases – such as cooling, neutral, heating, or overheating – by showing whether volume is increasing, decreasing, or remaining steady.

As shown in the chart below, Bitcoin remains in a cooling phase despite being within close range of its ATH. Historically, BTC tends to show signs of overheating when nearing all-time highs, but that’s not the case this time around.

Source: CryptoQuantBTC has been in this cooling phase since its April 2025 bottom of $74,508. Since then, the price has climbed more than 20%, yet the market shows no signs of a speculative peak. This divergence suggests there may still be room for further upside in the near term.

However, breaking past the ATH will likely require favorable macroeconomic conditions – such as interest rate cuts or easing regulatory pressures. The analyst added:

The market has already established a stable foundation. Thus, a strategy of patience, keeping an eye on major market events, and waiting for opportunities seems promising.

Meanwhile, prominent crypto analyst Titan of Crypto shared the following chart, noting that BTC continues to follow a bullish inverse head and shoulders pattern on the monthly timeframe, eyeing a potential breakout to $125,000.

Source: Titan of Crypto on XTo explain, the inverse head & shoulders pattern is a bullish chart formation that signals a potential reversal from a downtrend to an uptrend. It consists of three troughs – a lower low called “the head” between two higher lows called “the shoulders”, with a breakout typically occurring when the price crosses above the “neckline” resistance.

BTC May Struggle With Weak Demand

Despite promising technical signals, some on-chain data metrics raise caution. For example, BTC’s apparent demand has been declining steadily since May 2025, suggesting that buyer interest may be weakening.

Related Reading: Bitcoin Dip Nearing End? Data Shows Short-Term Sellers Losing SteamLikewise, the Bitcoin MVRV Ratio is beginning to show signs of bull market fatigue. A flattening MVRV slope can often indicate a slowdown in momentum and caution among investors. At press time, BTC trades at $107,175, down 0.1% in the past 24 hours.

Bitcoin trades at $107,175 on the daily chart | Source: BTCUSDT on TradingView.comFeatured Image from Unsplash.com, charts from CryptoQuant, X, and TradingView.com Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.