Bitcoin Pauses Near $121.5K as Altcoins Face Profit-Taking
Bitcoin (BTC) pulled back slightly to around $121,500 on Monday after climbing above $125,000 over the weekend. The minor retreat followed profit-taking across major altcoins, including DOGE, ADA, XRP, and BNB.
BNB Outperforms Amid Rotations
BNB has been a standout performer, rising over 17% in the past week to roughly $1,184. Analysts suggest this reflects capital rotation within crypto ecosystems, with investors moving funds from Bitcoin into high-demand assets.
Bull Run Remains Intact
Despite the pullback, the Bitcoin bull trend remains intact. Strong spot demand, record ETF inflows, and shrinking exchange balances—now at a six-year low of 2.83 million BTC—have bolstered momentum. ETFs added $3.2 billion last week alone, reinforcing bullish sentiment.
The Fear and Greed Index sits at 64, signaling elevated but not euphoric conditions, leaving room for further upside without excessive leverage.
Altcoin Pressure
Profit-taking weighed on altcoins: DOGE and ADA led declines, XRP, BNB, and TRX fell up to 2%, while ETH dipped slightly over 0.5%. Analysts attribute these moves to routine market rotation rather than a shift in the broader bull market.
Stablecoin Liquidity Provides Cushion
A surge in stablecoin supply—approximately $45 billion last quarter, mostly on Ethereum—offers liquidity to absorb profit-taking and maintain market momentum. Combined with U.S. government shutdown uncertainty, these factors support continued bullish trends for Bitcoin and other major assets.
Key Level: $125K
Analysts identify $125,000 as a critical test. Nick Ruck of LVRG points to institutional hedging and ETF-driven accumulation, while FxPro’s Alex Kuptsikevich warns of persistent long-term seller activity near these levels.
“The next move will likely test historical highs around $125K,” Kuptsikevich said. “How Bitcoin behaves here will indicate whether supply dominates or fresh demand can drive prices higher.”
For now, traders will watch closely: a rapid breach of $125,000 followed by rejection could trigger further profit-taking, while a measured climb supported by institutional flows could extend the rally.
