Bitcoin has recently faced a setback, falling below its all-time highs and approaching support levels last seen in late 2024. With analysts warning of a potential “deeper correction,” attention is now focused on the upcoming weekly close as a key indicator for the next move in the market.
Key Points:
- Bitcoin is trading below its recent all-time highs and is seeking support at levels last found in December 2024.
- Analysts are predicting a “deeper pullback” before bullish momentum returns.
- Profit-taking is central to the current resistance, according to market analysis.
Bitcoin Faces a Potential “Deeper Correction”
Bitcoin (BTC) has been struggling with a “deeper correction,” as it faces a temporary setback in the ongoing bull market. Trading below its recent all-time highs, Bitcoin has seen a drop of 8% from its peak, as shown by data from Cointelegraph Markets Pro and TradingView.
On May 31, Bitcoin dipped below its previous all-time high, with the latest correction approaching $9,000 below the existing record. Despite finding resistance from multiple sources, on-chain indicators soon predicted a slowdown in momentum.
According to the latest research report from CryptoQuant, “some of Bitcoin’s demand metrics may have hit a short-term peak, which could signal a pause in the current rally.” The platform reported a 229,000 increase in Bitcoin demand over the past 30 days, a figure close to the 279,000 Bitcoin demand spike reached in December 2024.
Additionally, whale holdings of Bitcoin rose by 2.8% in the last month, a pace that typically precedes a deceleration in whale accumulation. Unrealized profits have also been averaging over 30%, with Bitcoin hovering at $111,000, suggesting a possible pause in the rally.
Upcoming Key Weekly Close
Despite the bearish outlook, many market participants remain optimistic about a price recovery. However, they still anticipate that lower levels may come first. Well-known trader Mags pointed out that Bitcoin had fallen below its previous all-time high and was facing rejection at the same level.
Mags emphasized the importance of the upcoming weekly close as a test of the bulls’ strength, with Bitcoin still having a chance to reach its previous closing high of $104,450 set in December 2024. If Bitcoin closes below this key support and resistance level on the weekly chart, a deeper pullback could follow, possibly forming an inverse Head and Shoulders pattern before the next leg of the rally.
Analyst Aksel Kibar also agreed that the bull market’s resumption “may be delayed,” noting that the optimistic outlook remains intact as long as Bitcoin stays above $73,700. He maintained a medium-term target of $137,000 for 2025.
On-chain data from CryptoQuant also pointed to a lower high, with $120,000 on the radar as a significant level for profit-taking.
Conclusion
While Bitcoin may face a deeper correction in the short term, the longer-term outlook remains promising. The market is undergoing a healthy consolidation, and profit-taking is seen as necessary to sustain the ongoing bullish momentum. Traders and analysts continue to watch the upcoming weekly close closely, with the next few days potentially determining Bitcoin’s next major move.
Disclaimer: This article does not contain investment advice or recommendations. All investments and trades involve risks, and readers should conduct their own research before making any decisions.
