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 find the momentum to return to price discovery.
- Profit-taking is a significant factor in the current resistance, according to analysis.
Bitcoin (BTC) risks a “deeper correction” as the next phase of its bull market faces a temporary setback.
Bitcoin profit-taking causes bull run hiatus
Analysis warns of prices potentially dipping below $100,000 as BTC/USD drops 8%.
Bitcoin fell below its previous all-time highs as the latest correction approached $9,000 below its recent peak.
After bulls encountered resistance, onchain indicators began to forecast a slowdown in bullish momentum.
In its recent research report, CryptoQuant noted 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,” its authors wrote.
“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 added that unrealized profits were, on average, over 30% at $111,000, likewise hinting at a potential pause.
BTC price “deeper pullback” expected
Market participants anticipate lower levels before a return to price discovery.
“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 highlighted the upcoming weekly candle close as a crucial test of bullish strength, with the price needing to reclaim the old record close at $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 agreed that the bull market comeback “might be delayed.”
“Bullish interpretation intact as long as price holds above 73.7K,” he told X followers regarding the monthly BTC/USD chart.
Kibar maintained his midterm target of $137,000, which is in play throughout 2025.
CryptoQuant, however, anticipates a nearer-term profit-taking point at $120,000.
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.