Bitcoin’s Rally Stalls Below $104K as Analysts Warn of Deeper Pullback
Weekly Close at $104.5K Emerges as Pivotal Level for Bulls
Bitcoin’s record-breaking momentum is facing its first real test. After soaring past all-time highs earlier this year, BTC has slipped 8% from its recent peak and is now trading below the $104,450 level set in December 2024, a threshold analysts say could determine the short-term direction of the market.
Market Faces Profit-Taking and Waning Demand
The recent pullback is largely attributed to profit-taking, according to on-chain data. Insights from CryptoQuant suggest that BTC demand growth hit 229,000 over the last 30 days, approaching the 279,000 demand peak last recorded in December 2024.
In addition, whale-held Bitcoin balances have increased by 2.8% in the past month—a signal that has previously preceded a slowdown in whale accumulation. Meanwhile, unrealized profits averaged over 30% at $111,000, indicating investors may be locking in gains.
“Deeper Correction” Possible Before Next Breakout
While market sentiment remains cautiously bullish, analysts are preparing for what could be a deeper correction before Bitcoin resumes its upward trend.
“BTC has broken below the previous all-time high and is facing rejection at that same level,” trader Mags noted in a technical analysis post on X. “This might look like the start of a deeper correction.”
All eyes are now on the weekly candle close, with $104,450 viewed as a critical line of defense for bulls. A close below this level could result in Bitcoin forming an inverse head-and-shoulders pattern—a common reversal setup—before attempting another rally.
Bulls Still Hold Long-Term Outlook
Despite the current turbulence, some remain optimistic. Analyst Aksel Kibar noted that the bullish structure remains intact as long as BTC holds above $73,700 on monthly charts. Kibar’s midterm price target of $137,000 for 2025 remains unchanged.
Meanwhile, CryptoQuant sees $120,000 as the next significant profit-taking zone, suggesting a gradual climb could resume if current levels hold.
