Bitcoin Price Faces Delay: Crucial $104.5K Weekly Close Key

Is the Bitcoin bull run taking a breather? Recent price action suggests a temporary pause, leaving traders and investors watching key levels closely. After reaching new highs, Bitcoin has pulled back, sparking discussions about whether the next major leg up might be delayed. Let’s dive into the analysis pointing to why the current market phase is critical.

Bitcoin Price Pulls Back From Recent Peaks

The recent performance of the Bitcoin price has seen it trade back below its previous all-time highs. This correction, dropping several thousand dollars from the recent record, has tested support levels first seen in late 2024. Data indicates BTC/USD dropped around 8% recently, returning below old all-time highs on May 31. This movement has led many to question the immediate bullish outlook.

Why the Bitcoin Bull Run Might Be Delayed

Analysis suggests that profit-taking is a significant factor contributing to the current resistance and the potential delay in the Bitcoin bull run. Onchain indicators began forecasting a slowdown in bullish momentum even before the recent price drop. As Bitcoin approached and surpassed previous highs, many long-term holders and short-term traders found themselves sitting on substantial unrealized profits.

When unrealized profits become significant, the incentive to sell and realize those gains increases, creating selling pressure. This profit-taking activity can absorb demand and slow down upward price movement, potentially leading to a correction or a period of consolidation before the market can gather momentum for the next push higher.

Key Insights from BTC Analysis

Onchain analytics platform CryptoQuant provided specific insights in recent BTC analysis. Their research indicates:

• Bitcoin’s demand metrics show signs of reaching a short-term top.
• Estimated demand growth over the last 30 days (around 229K BTC) is near previous peaks (like 279K BTC in December 2024).
• Whale-held Bitcoin balances increased by 2.8% in the past month, a pace sometimes preceding a slowdown in accumulation by these large holders.
• Unrealized profits averaged over 30% at the $111,000 price level, suggesting strong potential for selling pressure.

These metrics collectively paint a picture of reduced immediate buying pressure and increased potential for selling, supporting the view that the rally could pause.

What This Crypto Market Update Means for Traders

Market participants are digesting this Crypto market update. While many remain optimistic about Bitcoin’s long-term prospects and a eventual return to price discovery, they anticipate lower price levels first. Trader Mags noted on X that Bitcoin breaking below and facing rejection at the previous all-time high level on the daily chart could signal the start of a deeper correction.

A critical point highlighted by Mags is the upcoming weekly candle close. Protecting the old weekly closing record at $104,450 from December 2024 is seen as vital. A close below this level could pave the way for a more significant pullback, potentially forming a pattern like an inverse Head and Shoulders before the next upward move.

Analyst Aksel Kibar echoed the sentiment that the bull market comeback might be delayed. However, he maintained a bullish interpretation as long as the price holds above $73.7K on the monthly chart, keeping a midterm target of $137,000 in play for 2025. CryptoQuant’s analysis also flagged $120,000 as a key level where further profit-taking might occur.

Monitoring Key Bitcoin Levels

Based on the analysis, several Bitcoin levels are now under the microscope:

• $104.5K: The crucial weekly closing level from December 2024. Holding this is key for bulls in the short term.
• Old All-Time Highs: Levels around the recent peak, now acting as resistance after the price dropped below them.
• $73.7K: A significant support level on the monthly chart, considered by some as the line in the sand for the overall bullish structure.
• $120K: Identified by CryptoQuant as a potential profit-taking station on the path higher.
• $137K: A midterm price target maintained by some analysts for 2025.

These levels will be critical indicators of market strength and direction in the coming weeks.

Summary: A Strategic Pause or Deeper Retracement?

The current market phase for Bitcoin appears to be one of caution and potential consolidation. While the long-term outlook remains positive for many analysts, the immediate challenge of profit-taking and testing key support levels suggests the path forward may not be a straight line up. The upcoming weekly close around the $104.5K level is a pivotal moment traders are watching. A failure to hold this level could signal a deeper pullback, offering potential entry points for those looking to participate in the next phase of the bull run. Conversely, a strong close above this level could re-ignite bullish sentiment. The market is navigating a complex period, balancing strong underlying demand with the natural cycle of profit realization after significant gains.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.