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Bitcoin Bubble Chart Signals Cooling Without Overheating – Breakout Coming Soon?

Ash Tiwari
by Ash Tiwari
2 weeks ago
·
Posted in Bitcoin News
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 Fatigue

For 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.

cq1
Source: CryptoQuant

BTC 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.

titan
Source: Titan of Crypto on X

To 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 Steam

Likewise, 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
Bitcoin trades at $107,175 on the daily chart | Source: BTCUSDT on TradingView.com
Featured 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.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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