Bitcoin Price Soars 12% in a Week as CryptoQuant Warns Euphoria Is Still Building

Highlights:

• The Bitcoin price surges to $123,000 before retracing to $121,000, up 12% in a week.
• CryptoQuant’s gap indicator turns green, hinting at a potential parabolic rally.
• The overbought RSI level signals a potential healthy pullback before a substantial rally to higher heights.

As of July 14, 2025, Bitcoin price broke to a new ATH at $123K before slightly retracing to $121K. The crypto market is buzzing with new ATHs as new institutional money is flowing into the market. Meanwhile, CryptoQuant data shows that the recent rally is quite remarkable. However, the market is not yet in a euphoric state.

In the past, when this indicator turned green, indicating a positive gap, Bitcoin entered a parabolic rally driven by leverage and the fear of missing out (FOMO) in the derivatives sector. The chart posted by CryptoQuant indicates that the positive gap is only starting to develop, which means that another confirmation of the euphoria stage is shifting aside.

Bitcoin Not in Euphoria Yet – But That Might Change Soon!

“Historically, when this indicator turned green (positive gap), Bitcoin entered a parabolic rally, often driven by leverage and FOMO in derivatives.” – By @joao_wedson pic.twitter.com/51hZkbOAyP

— CryptoQuant.com (@cryptoquant_com) July 14, 2025

Such a signal can serve as an indicator of an impending blow-up, characterized by a rapid exponential increase in the price movement of Bitcoin, triggered by a cascade of buy orders and leveraged positions. However, caution is advised as volatility and subsequent corrections are its close companions. On the other hand, Ali (@ali_charts) predicted this breakout and stated that the first level of targeting was complete. The Bitcoin price now has new resistance levels at $131,000, $144,000, and $158,000.

Bitcoin $BTC has hit the first target at $121,000 after breaking out of a parallel channel. The next key levels are $131,000, $144,000, and $158,000. pic.twitter.com/GsOFa0MyrJ

— Ali (@ali_charts) July 14, 2025

Bitcoin Price Technical Indicators Uphold a Bullish Picture

Technically, the trend of Bitcoin has been positive after breaking out of a consolidation channel. The daily chart shows a strong bullish grip as BTC has continued to hold steady above the 50-day and 200-day moving averages. The immediate support currently lies at $107,711 and $97,133, indicating that the bullish market on the asset remains intact.

The Relative Strength Index (RSI) of momentum indicators stands at 78.09, which is deep in the overbought area, signalling extreme buying activity. Traders and investors should be on the lookout to carefully evade the bull trap. The most recent rally was supported by a 2.19 percent hike on the day, which cemented Bitcoin at a new record of $123,231.07. This rise, with the current price hovering around $121,739.45, indicates that institutional and retail investors are active. 

BTC Set for More Upside, Bolstered by the Bullish Grip

A zoomed-out view of Bitcoin price boasts a splendid bullish muscle, with the bulls having the upper hand. Meanwhile, according to CryptoQuant analysis, Bitcoin is set for further upside. Moreover, the technical indicators continue to support a bullish outlook. If the support zones coinciding with the 50-day and 200-day MAs hold, a rally towards $124K-$131K could be plausible.

However, an overbought RSI or a sudden drop in volume could trigger a pullback to $119K support zone. With crypto heating up in mid-2025, the Bitcoin price could ride the positive market trend. A 12% pump in a week is no small feat, but it’s all about timing. Traders will want to keep an eye on the $116,480-$107K range, as it will help indicate any change in trend.