Bitcoin remains above key support levels at $102K despite a 1.22% daily dip, suggesting bullish momentum is still intact.
The recent pullback appears to be a technical retest of breakout levels, with Fibonacci zones acting as stabilization points.
Elevated trading volume and market cap resilience point to sustained investor interest despite short-term volatility.
Bitcoin’s recent rally has encountered a temporary pullback, as the digital asset trades near the $107,500 level following a period of consistent upward momentum. Although the basic cryptocurrency is still well built, its value fell 1.22% on the day, raising concerns about the latest surge. The recent drop does not change Bitcoin’s overall bullish stance, with a number of factors showing that many people are still interested in it.
Price Action Signals Caution Following Breakout
Bitcoin had earlier in the month broken above a descending trendline, indicating a shift in market sentiment and paving the way for a rally that saw prices reach multi-month highs. The breakout above resistance levels near $96,000 and $102,000 confirmed the reversal of the trend, attracting new buying pressure. The price has, however, just encountered rejection below the $110,000 level, prompting a modest correction to $107,534 at the time of writing.
https://twitter.com/rovercrc/status/1926559362543132790
According to a chart analysis, the present drop could represent a revisit to where the breakout occurred, since prices have moved above key Fibonacci retracements. Reversal tests near $102,000 to $104,000 could happen if the market turns more bearish in the near future. Overall, the market is still rising, depending on whether the bulls manage to support these prices.
Market Metrics Highlight Steady Demand
Bitcoin's market capitalization stands at $2.13 trillion today, 1.20% down on the day but otherwise strong in valuation. Its 24-hour trading volume stands at $44.54 billion, which is approximately 2.04% of its total market capitalization—a standard metric for estimating short-term liquidity. Market observers see the high trading volume as a signal that investors remain actively interested even during the short-term decline.
Source: CoinMarketCap
The fully diluted valuation (FDV) of Bitcoin sits at $2.25 trillion, factoring in the maximum supply of 21 million coins. With 19.86 million BTC already in circulation, supply constraints continue to be a notable element influencing long-term valuation models.
Broader Context and Technical Outlook
The recent correction appears modest within the context of the overall cycle of the market. Bitcoin had consolidated previously within a $88,000 to $96,000 range before the breakout, and this implies that the current trend is building on a firm foundation of accumulation. The change of momentum, particularly after breaking above the falling resistance line, has reinstated the asset within the bullish trend—though short-term fluctuation cannot be prevented.
If the price falls below $102,000 for a significant period, technical analysts anticipate a bigger decrease, yet support at this level could confirm that the breakout is legitimate. With June getting closer, investors will monitor market reactions at the $110,000 resistance area which could influence Bitcoin’s upcoming movement for the third quarter.
