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Following a vigorous multi-week surge, Bitcoin has stalled its rising trend at the $105K mark, retreating to secure support within the $101K–$100K range. This downturn comes after a phase of substantial purchasing that drove BTC through multiple significant resistance levels, such as $90K and $100K, sparking enthusiasm throughout the crypto sphere. Although the pullback might seem like a deceleration, numerous analysts interpret it as a constructive consolidation ahead of a potential additional increase.
Adding to the prevailing bullish outlook, CryptoQuant statistics indicate that in the last 20 days, over $6 billion in liquidity has flowed into the market via newly minted USDT. This considerable capital influx elevates Tether’s overall market capitalization to a remarkable $150 billion, further underscoring rising investor interest. With such liquidity permeating the ecosystem, the focus now shifts to whether Bitcoin can sustain its current support area and persist in its trajectory toward all-time peaks.
This time of consolidation may be crucial. If BTC succeeds in maintaining above $100K, the upward trajectory remains unbroken. Conversely, a more significant correction could occur as the market digests recent profits. All attention is on price movements in this vital area.
Altcoin Rotation Picks Up As Bitcoin Hovers Below Its All-Time Highs
Bitcoin is presently trading at a vital juncture, with bulls working to uphold the $100K mark and reclaim $103K to attempt a break above the all-time peak at $109K. Although BTC remains in a fundamentally bullish condition, it has struggled to rise further after hitting $105K last week, prompting a pullback that now evaluates essential support thresholds. Sustaining the $100K range is critical to prevent a more profound correction and to preserve momentum in what has been one of the most robust rallies of the year.
Nevertheless, attention is beginning to ripple to other sectors of the market. Leading analyst Axel Adler provided insights on X, revealing that $6 billion in new investments has flowed into the crypto ecosystem over the past 20 days via freshly issued USDT, elevating Tether’s total market capitalization to $150 billion. While this influx of liquidity initially bolstered Bitcoin’s ascent, the trend has begun to shift towards altcoins.
As Bitcoin’s dominance starts to wane, Ethereum and other prominent altcoins are capturing a significant share of capital influxes. This rotation indicates increasing investor confidence in higher-risk investments, especially as ETH reestablishes pivotal levels and altcoins exhibit potential for breakout. If Bitcoin continues its consolidation, altseason momentum may further intensify in the upcoming weeks.
BTC Challenging Resistance As Buyers Support Fundamental Levels
Bitcoin is currently solidifying just beneath the $103,600 resistance after a sharp climb that witnessed the price surge from below $90K to over $105K in less than fourteen days. As illustrated in the daily chart, BTC has persistently tested the $103,600 mark—an area that served as a ceiling during the January and March peaks. Despite numerous breakout attempts, the price has yet to achieve a definitive daily close above this level, reflecting significant supply pressure.
Support now resides around the $100K–$101K range, aligning with the psychological round number and the former breakout area. To date, bulls have succeeded in defending this mark, demonstrating strength in preserving the existing structure. The 200-day SMA at $91,781 and the 200-day EMA at $87,508 lie well below current price levels, affirming Bitcoin’s strong upward trend yet suggesting a potentially overheated short-term configuration.
A sustained breakout beyond $103,600 would pave the way toward retesting the all-time summit at $109K. However, failure to maintain above $100K could instigate a more profound retreat toward lower demand zones. For the time being, Bitcoin remains in a bullish stance, but the market is vigilant for validation from volume and price dynamics to ascertain the next course of action.
Featured image from Dall-E, chart from TradingView
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