Market optimism persists, yet early signs of fatigue are emerging as Bitcoin approaches crucial technical and psychological barriers.
XRP led the decline among major cryptocurrencies, dropping more than 4% in the past 24 hours, as the broader market pauses following last week’s strong rally.
Bitcoin remains steady above $104,000, with traders anticipating a gradual push beyond the $105,000 mark — a level now serving as both a psychological and technical resistance point.
The total crypto market capitalization slipped 2% to $3.3 trillion, according to CoinGecko data. Other leading tokens like Ethereum (ETH) and Solana (SOL) are hovering near their 200-day moving averages, a zone often signaling either consolidation or a potential short-term pullback.
“Bitcoin has been steadily forming a top over the last week,” said Alex Kuptsikevich, chief market analyst at FxPro. “This pattern usually indicates an impending correction, especially when coupled with weakness in equities and profit-taking in gold.”
The Crypto Fear & Greed Index edged down slightly from 73 to 70, remaining in “greed” territory but pointing to a loss of momentum.
Augustine Fan of SignalPlus noted that while the market may continue to grind upward unless equities falter, Bitcoin faces stiff resistance around $105,000. He suggested Ethereum might outperform in the near term as part of a broader altcoin rally, supported by stronger inflows and relative strength.
Fan also highlighted a broader macro shift favoring crypto investments. “The current ‘anti-dollar’ stance appears more structural this time,” he said. “Investors are increasingly reallocating into emerging markets, precious metals, and crypto as hedges against geopolitical and currency risks.”
K33 Research indicated that Bitcoin’s recent gains are driven by genuine spot market demand rather than risky leverage. This buying pressure, particularly from retail investors and wealth managers in Asia, may underpin sustained bullishness even amid short-term price consolidation.
Nick Ruck from LVRG Research added that the current price pause could be due to cautious sentiment ahead of forthcoming macroeconomic reports and uncertainty about the long-term effects of recent U.S. trade agreements.
“The market is bracing for volatility tied to upcoming economic data and investor concerns over inflation-driven reduced consumer spending in the U.S. last month,” Ruck explained. “While traders are cautiously optimistic as trade deals support higher prices, worries linger about the enduring impact of tariffs following finalized agreements with major partners.”
For now, the market is holding just below critical breakout levels, with the next significant move poised to set the tone across the crypto landscape.
