Cointelegraph reports that the anticipated Bitcoin bull rally might experience a hiccup, with the critical $104.5K weekly close being a determinant. Bitcoin is trading below its recent peak levels, testing support levels initially established in late 2024.
According to market analysis, a deeper pullback could be on the horizon before the bulls regain momentum for price discovery. The current resistance is predominantly due to profit-taking.
Bitcoin is vulnerable to a “deeper correction” as the next stage of its bull market could face a brief interruption. Analysts warn of prices falling below $100,000 as data from Cointelegraph Markets Pro and TradingView shows an 8% drop in BTCUSD.
Bitcoin went below its old peak levels on May 31 as the latest correction approaches nearly $9,000 below its recent record high. After experiencing resistance from various sources, onchain indicators suggest a slowdown in bullish momentum.
A recent research report by onchain analytics platform CryptoQuant indicates that “some of Bitcoin’s demand metrics may be reaching a short-term top, which could hint at a pause in the current rally.”
The report mentions that “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.” Notably, whale-held Bitcoin balances have increased by 2.8% over the past month, a rate frequently preceding a slowdown in whale accumulation.
CryptoQuant further states that unrealized profits were, on average, over 30% at $111,000, suggesting an imminent pause.
Despite maintaining a bullish outlook on a return to price discovery, market participants anticipate lower levels first. Popular trader Mags highlights the importance of the upcoming weekly candle close as a critical test of the bulls’ strength. If Bitcoin fails to retake the old record close at $104,450 from December 2024 on weekly timeframes, a “deeper pullback” may be in the offing.
Trader and analyst Aksel Kibar concurs that the bull market’s return “might be delayed.” He remains confident about the bullish interpretation as long as the price stays above 73.7K.
Amidst these developments, CryptoQuant sees the price possibly halting at $120,000, a key profit-taking station. However, it is essential for investors and traders to conduct their own research as every investment and trading move involves risks.
