Consolidation or Collapse? BTC tests key support as market sentiment shifts
The crypto market is under pressure today, with Bitcoin falling below $105,000 and 98 of the top 100 coins posting losses. Total market cap dropped over 6% to $3.38 trillion, even as daily trading volume surged to $168B — signaling volatility is far from over.
What’s Driving the Decline?
This isn’t panic selling — it’s a continuation of yesterday’s pullback. Despite a softer-than-expected U.S. inflation print, investor sentiment is cautious. Bitcoin is struggling to reclaim its May highs and now sits just above its 1-month cost basis of $105.2K.
While some fear a double top pattern forming, others argue we’re simply consolidating before the next leg up. Market sentiment has dipped into “neutral” territory, but hasn’t yet crossed into fear.
Key Numbers to Watch
- BTC: $104,694 (-2.7%)
- ETH: $2,529 (-7.9%)
- SOL: $145 (-8.7%)
- Stablecoins: Market cap hits $250.9B ATH
- Altcoin Divergence: TRX held steady (-0.5%), while SPX crashed (-18.6%)
ETF and Stablecoin Trends
While BTC ETFs saw reduced inflows, ETH ETFs continue to attract capital for the 19th consecutive day. Meanwhile, stablecoins are booming again, driven by growing use cases and increased regulatory clarity in the U.S.
Opportunity or Warning Sign?
If Bitcoin reclaims $105K and heads for $107K (the max pain level for Friday’s options expiry), a short squeeze could push us higher. But if support fails at $101K, watch for a deeper move toward $97K.
Trading Takeaway
Short-term consolidation doesn’t change the macro trend. But if you’re thinking long-term — dips like these are often where accumulation begins. The resilience of ETH and the rise of stablecoins suggest capital isn’t leaving crypto — it’s just moving smarter.
🔍 This article is for informational purposes only and does not constitute investment advice.
