Bitcoin Retreats From Key Levels: What’s Driving the Reversal?
- Why Did Bitcoin Suddenly Drop From $110,500?
- Are Dormant Bitcoin Wallets Really Selling?
- How Are Macro Risks Affecting Crypto?
- Can Bitcoin Still Reach New Highs in 2025?
- FAQ: Your Bitcoin Pullback Questions Answered
Bitcoin’s recent pullback from near all-time highs has left traders scratching their heads. Despite bullish ETF inflows and institutional interest, the cryptocurrency dipped to $107,000 after briefly touching $110,500—just 1.33% shy of its $111,970 record. Profit-taking, dormant wallet movements, and macroeconomic jitters are fueling the volatility. Yet analysts remain divided: some see a temporary correction, while others predict new highs by September based on historical halving cycles. Here’s the full breakdown.
Why Did Bitcoin Suddenly Drop From $110,500?
Bitcoin’s 3% retreat on Friday wasn’t for lack of demand—U.S. spot bitcoin ETFs recorded $1 billion inflows in two days. Instead, three factors collided:Traders locked in profits near resistance at $111,000 (a psychological barrier);Weekend volatility fears prompted defensive moves (historical data shows thinner liquidity on Saturdays);Trump’s proposed $3.4 trillion tax-cut plan spooked markets already wary of asset bubbles. CoinGlass data reveals open interest dropped 8% during the slide, confirming deleveraging.
Are Dormant Bitcoin Wallets Really Selling?
Lookonchain’s report of 80,000 BTC (worth $8.7 billion) moving after 14 years sparked panic—but blockchain sleuths found no evidence of mass selling. CryptoQuant’s Julio Moreno noted these were likelybetween cold wallets. Similar movements in 2023 (e.g., 50,000 BTC reshuffled in March) preceded rallies, not dumps. Still, retail traders reacted emotionally: BTCC exchange saw a 15% spike in sell orders within hours, per TradingView metrics.
How Are Macro Risks Affecting Crypto?
Bank of America’s Michael Hartnett warns the S&P 500’s 6,300 threshold could trigger a "risk-off" cascade. Bitcoin’s 30-day correlation with equities has risen to 0.67 since June—its highest since 2022. Other red flags:Fed Chair Powell’s hawkish comments on inflation;China’s export tariffs threatening tech stocks;Oil prices hitting $90/barrel, squeezing disposable income. "Crypto isn’t an island anymore," says BTCC analyst Mark Liu. "When Nasdaq sneezes, we get a cold."
Can Bitcoin Still Reach New Highs in 2025?
History offers hope. Analyst Ash crypto highlights that post-halving peaks typically occur 18 months later (September 2025 in this cycle). Meanwhile, U.S. ETF inflows now total $58 billion—eclipsing gold ETFs’ first-year record. Key levels to watch:$104,000 (200-day MA);$111,970 (ATH). "This is a healthy reset," argues Crypto Seth. "The real FOMO begins above $120K."
FAQ: Your Bitcoin Pullback Questions Answered
What caused Bitcoin’s drop from $110,500?
Profit-taking NEAR resistance, macroeconomic uncertainty, and overreaction to dormant wallet movements.
Should I sell my Bitcoin now?
This article does not constitute investment advice. Consider your risk tolerance and consult multiple data sources like CoinGlass and TradingView.
When might Bitcoin peak this cycle?
If historical patterns hold, September 2025 is a likely candidate based on halving timelines.
