Bitcoin Stumbles After Record High—Is This a Dip or the Start of a Deeper Correction?
Bitcoin’s latest bull run hit a wall just days after notching a fresh all-time high. The king of crypto now shows unsettling volatility—classic behavior after a parabolic surge, but enough to make even diamond-handed hodlers sweat.
Market psychology at play: Traders who bought the top are now panic-selling to Wall Street quant bots that couldn’t care less about ’HODL’ culture. Meanwhile, institutional money waits in the wings—because nothing excites hedge funds like buying the dip after retail gets liquidated.
Technicals flashing warning signs: The RSI veered into overbought territory faster than a crypto influencer shilling their memecoin bags. Support levels that held during the last rally now look as stable as a TerraUSD peg.
Silver lining? Bitcoin’s fundamentals remain stronger than a banker’s disdain for decentralized finance. Miners keep stacking sats, and the upcoming halving looms—history’s favorite supply shock catalyst.
Closing thought: If this is the start of a deeper correction, remember—crypto winters freeze out weak hands, but they also plant the seeds for the next cycle’s generational wealth. Just ask the guys who sold their BTC for pizza in 2010.
Technical Analysis
The Daily Chart
Bitcoin has officially broken above its previous all-time high of $109K, establishing a new peak around the $112K region. This breakout underscores strong buyer interest and highlights the bullish sentiment that continues to fuel this cycle.
However, the recent price action suggests that bullish momentum is softening, with BTC beginning a minor pullback toward the broken $109K level. This area now acts as a crucial support zone. If renewed demand materializes at this level, Bitcoin could resume its upward trajectory toward the $115K mark and potentially higher.
Conversely, if selling pressure intensifies and the $109K level fails to hold, a deeper correction may unfold. In this scenario, a retest of the psychological $100K support becomes increasingly probable, potentially classifying the breakout as a bull trap, shaking investor confidence, and introducing volatility in the short term.
The 4-Hour Chart
On the 4-hour chart, BTC maintains a bullish market structure, with a clear sequence of higher highs and higher lows. The price has consistently respected an ascending trendline, which remains a key dynamic support.
Following the breakout, bitcoin is currently retracing toward this trendline as well as the broken $109K swing high. This confluence zone will play a pivotal role in determining the next move. Should it hold, a renewed rally toward the $115K resistance zone becomes highly likely.
However, if Bitcoin fails to hold this level and breaks below the trendline, it WOULD signal short-term weakness, opening the door for a correction toward the $100K range.
On-chain Analysis
By ShayanMarkets
While BTC has reached a new all-time high at $112K, a wave of profit-taking is naturally expected, particularly from short-term traders securing gains. However, a deeper look into on-chain metrics reveals a contrasting narrative among long-term holders, investors who have held BTC for over 150 days.
The LTH-SOPR has remained relatively low during this rally, especially when compared to the levels seen during Bitcoin’s surge to $73K in late-2024. Despite the price now being significantly higher, long-term holders are not showing signs of major profit realization. This indicates ongoing accumulation behavior, reflecting confidence in higher future valuations.
This divergence in behavior highlights that the current consolidation phase is likely driven by short-term holders and retail participants, rather than broader market distribution. If long-term holders continue to display conviction, Bitcoin is well-positioned to resume its uptrend following this short-term pause, with the potential to set new ATHs in the mid-term.
