Bitcoin BTC-2.11% Bitcoin dropped briefly below $104,000 as the market capitalization of all coins fell by 1% to $3.27 trillion. Some of the top laggards were altcoins like Fartcoin FARTCOIN15.4% Fartcoin, Dogwifhat WIF-5.23% dogwifhat, Jupiter JUP-10.52% Jupiter, and Ethena ENA-6.92% Ethena.
Analysts suggest the ongoing pullback is a typical occurrence during bull markets, as some investors begin locking in profits. In a statement to crypto.news, Ryan Lee, Chief Analyst at Bitget Research, said:
Ryan added that the ongoing geopolitical developments like trade tensions from the US had contributed to market uncertainty and triggered a risk-off sentiment.
Bitcoin tends to pull back after reaching a key resistance level, often triggering a broader correction across altcoins. For example, BTC hit a record high of $108,335 in December before retreating to $88,987 in January. It later surged to a new all-time high of $109,300 in the same month.
Bitcoin may be preparing for another rally, which could spark a broader altcoin rebound. On the daily chart, BTC is gradually forming a bullish flag pattern — characterized by a steep vertical rally (the flagpole) followed by a downward-sloping consolidation channel (the flag). This setup is typically viewed as a continuation pattern.
