Key points:
- Bitcoin is trading back below its recent all-time highs, testing support at levels it first encountered in late 2024.
- A “deeper pullback” may occur before bulls regain momentum for price discovery.
- Profit-taking is identified as a key factor contributing to the current resistance.
Bitcoin (BTC) faces the risk of a “deeper correction” as the next phase of its bull market encounters a temporary setback.
Bitcoin Profit-Taking Causes Bull Run Hiatus
Analysts are cautioning about the possibility of prices dropping below $100,000, with data from TradingView indicating an 8% drop in BTC/USD.
Bitcoin dipped back below its previous all-time highs on May 31, with the current correction nearing $9,000 below its recent peak.
After encountering resistance from various sources, on-chain indicators began to forecast a slowdown in bullish momentum.
In their latest research report, the on-chain analytics platform CryptoQuant observed that “some of Bitcoin’s demand metrics may be reaching a short-term top, which could imply a pause in the current rally.”
“CryptoQuant’s estimate of Bitcoin’s demand growth in the last 30 days is at 229K, which is near the previous demand growth top of 279K Bitcoin reached in December 2024,” the authors noted.
“Additionally, whale-held Bitcoin balances have increased by 2.8% over the past month, a pace that often precedes a slowdown in whale accumulation.”
CryptoQuant further highlighted that unrealized profits were, on average, over 30% at $111,000, suggesting a potential pause.
BTC Price “Deeper Pullback” Expected
Consequently, market participants, while remaining optimistic about a return to price discovery, anticipate lower levels in the near term.
“On the daily chart, BTC has broken below the previous all-time high and is facing rejection at that same level,” trader Mags wrote in a recent analysis.
“This might look like the start of a deeper correction.”
Mags emphasized the upcoming weekly candle close as a crucial test of bullish strength, noting that the price still has the potential to reclaim the previous record close of $104,450 from December 2024 on weekly timeframes.
“If BTC closes below the horizontal support and resistance line on the weekly, we could see a deeper pullback possibly forming an inverse Head and Shoulders before the next leg up,” he concluded.
Trader and analyst Aksel Kibar also suggested that the bull market comeback “might be delayed.”
“Bullish interpretation intact as long as the price holds above 73.7K,” he informed his followers on X regarding the monthly BTC/USD chart.
Kibar maintained his midterm target of $137,000, which has been in play throughout 2025.
CryptoQuant, on the other hand, anticipates an earlier stop-off point, with $120,000 identified as a key profit-taking level.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.