Bitcoin Holds Near $121.5K as Altcoins See Profit-Taking
Bitcoin (BTC) steadied around $121,500 on Monday after peaking above $125,000 over the weekend, as profit-taking impacted several major altcoins. DOGE, ADA, XRP, and BNB all slipped modestly, signaling a short-term pause rather than a reversal in the broader bull trend.
BNB Leads Weekly Gains
BNB was the standout, climbing over 17% in the past week to roughly $1,184. Analysts note that this reflects intra-ecosystem rotations, with investors reallocating funds from Bitcoin into high-demand altcoins.
Bullish Fundamentals Remain Intact
Market momentum is supported by strong spot demand, ETF inflows, and shrinking exchange balances, now at a six-year low of 2.83 million BTC. U.S.-listed ETFs added $3.2 billion last week alone, fueling ongoing accumulation. The Fear and Greed Index sits at 64—elevated, but not yet at euphoric levels.
Altcoin Pressure
DOGE and ADA led the declines, while XRP, BNB, and TRX fell up to 2%, and ETH dipped slightly over 0.5%. Analysts see this as normal rotational activity rather than a broader market warning.
Stablecoins Provide Dry Powder
Stablecoin supply expanded by about $45 billion last quarter, mostly on Ethereum, giving the market liquidity to absorb profit-taking and sustain momentum.
Key Level: $125,000
Experts view $125,000 as a critical test for Bitcoin. Institutional flows and ETF-driven accumulation support upside potential, while long-term sellers could cap gains. Analysts say a steady approach could allow BTC to challenge historical highs, whereas a rapid rejection may trigger further profit-taking.
