Bitcoin has surged to $108,300 in the past 24 hours, setting new highs. However, history suggests that Bitcoin could be entering a short-term correction phase.
Bitcoin reached $108,300 in the past 24 hours before a pullback. According to Whalemap, “whales bought over 150,000 BTC at $98,133.” This is seen as a strong support area if Bitcoin continues to fall.
The recent correction has brought open interest down from its previous record high of more than $70 billion to below that level. About $1.3 billion worth of positions were liquidated, according to CoinGlass.
Analyst Josh Rager reassured:
“Don't worry too much about every adjustment in the crypto market, whether it's Bitcoin, Ethereum, Solana, or meme coins. Adjustments are normal and necessary. The market will recover strongly in the next 3 to 6 months. Summer 2025 is a good time to accumulate assets.”
Despite many optimists expecting Bitcoin to reach $120,000 soon, analyst Rekt Capital warned that Bitcoin could face a deeper pullback.
“This is Week 7,” he said, referring to the bull market since Bitcoin broke its all-time high.
“In 2013, Bitcoin dropped in the 7th week of price discovery. In 2017, Bitcoin dropped -34% in the 8th week. In 2021, Bitcoin dropped -16% in the 6th week,” shared analyst Rekt Capital.
He also emphasized that the timing of Bitcoin's pullback is not a decisive factor:
“It's more important to be prepared when this happens, as once an adjustment occurs, it may wipe out weeks of gains.”
Bitcoin bull market decline
Data from Glassnode shows that the recent all-time high reached by Bitcoin has led to an increase in trader activity. Trading volume steadily declined over the past week and then surged to $82.84 billion.
Read more: 5.8 billion Dogecoin reactivated, whales profit
However, despite the surge in trading volume, market sentiment remains cautious. Traders are skeptical about whether Bitcoin can break through $107,000, as seen from the long-short ratio.
Data from Coinglass shows that Bitcoin's long-short ratio has dropped to 0.58. Short positions account for 63.48% of total open contracts, while long positions make up only 36.52%. This stark difference indicates that most traders are preparing for a short-term Bitcoin price adjustment.
