Bitcoin's Fourth Day of Slump – Potentially Preparing for a Secret Surge
Bitcoin Stagnates after Four Straight Days of Decline, But Market Optimism Remains High
Bitcoin, the world's largest cryptocurrency, slipped from $110,000 to $104,000, marking its first four-day decline since March 2025. Despite this downturn, the market's optimism remains robust, with analysts predicting a potential rebound toward $109,000.
The persistence of demand remains strong, as indicated by over $1.8 billion in net capital inflows on May 29th, a figure last seen during the November 2021 bull market. This inflow mirrors past cycle tops, where capital peaked at $3.6 billion near $73,000 and hit $4.5 billion at $92,000, suggesting that investors expect higher levels ahead.
Whales, significant Bitcoin holders, have been leading this accumulation, collecting nearly 20,000 BTC over the past two days. Concurrently, more than 50,000 BTC have left exchanges, indicating accumulation rather than distribution. This massive accumulation is evidenced by the Bitcoin exchange net flow remaining negative for seven consecutive days for the first time in 2025.
Short-term holder SOPR shows that selling pressure remains muted, even though most holders are still in profit. This indicates that these holders are not panic-selling, but rather holding on to their assets, reinforcing the broader bullish structure.
While Bitcoin's price decline is a concern, the cause appears to be more macro-driven than sentiment-based. If demand can hold, a rebound toward $109,000 is possible. However, if the price further declines, it could trigger panic among recent buyers, potentially leading to a deeper correction.
In terms of technical support, Bitcoin is approaching a daily fair value gap between $97,000 and $100,000, a zone expected to hold substantial demand. Should the price stabilize within this range, a rebound toward $109,000 is likely. Furthermore, if Bitcoin manages to reclaim the $106,000 resistance level, it could signal a resumption of the upward trend.
Analysts predict that Bitcoin could climb toward $120,000 if whale accumulation continues and the price stays above $108,000, indicating a potential for future price growth. However, a breakout above $108,000 is necessary to set the stage for a bullish recovery, and a decisive breakout below this level could lead to a deeper correction.
Overall, while Bitcoin faces challenges in the short term, optimistic factors such as technical support levels, resistance levels, and market expectations provide hope for a potential rebound.
- Investors' focus hasn't been limited to Bitcoin alone; Ethereum (ETH) also witnessed a surge, breaking past the $3,500 resistance level due to increasing institutional interest in the crypto technology sector.
- As Bitcoin continues to stabilize, other cryptocurrencies such as Pepe (PEPE), a popular meme token, have seen significant gains, with traders capitalizing on the overall market optimism.
- Amidst the bullish sentiment, some investors are actively looking for alternatives to Bitcoin, exploring decentralized exchange platforms to diversify their portfolios and potentially profit from emerging crypto technologies.
