Cryptocurrency Markets on Fire: Short-Term Correction or End of Bull Run?
The cryptocurrency market witnessed a sharp correction, as a widespread sell-off sent a series of altcoins falling significantly, while Bitcoin also failed to hold important support levels.
Bitcoin Slows Down, Altcoins Plunge
Bitcoin (BTC), the world's largest digital currency, fell from its weekly high of $105,000 to $103,000, marking a retreat after a recent impressive rally. Bitcoin's weakness has led to a widespread collapse of altcoins, including many names that were once the focus of growth:
Pi Network (PI): Down -17.95%
Bonk (BONK): Down -11.78%
Floki (FLOKI): Down -9.63%
Penguin (PENGU): Down -10.05%
These are all tokens that have seen double- and even triple-digit gains in just the past few weeks. However, the high profits were quickly replaced by profit-taking pressure as the market lacked new momentum.
Main reason: Profit-taking and macro instability
According to analysts, this correction is largely due to short-term profit-taking sentiment. Altcoins like Bonk, Floki or PENGU have all had huge gains since April — about 200%, 162% and more than 330%, respectively. These numbers have led many investors to decide to realize profits when Bitcoin failed to break the resistance level of $ 105,000.
In addition, global macro factors have also put the market on the defensive. Although the US and China reached a trade truce, high tariffs remain in place — 30% on many goods, along with unresolved disagreements with the UK and Japan.
Moody's, one of the world's three largest credit rating agencies, also downgraded the US's credit rating late Friday, citing record public debt and political deadlock in Washington. This has increased concerns about the possibility of a recession in the world's largest economy — a factor that often causes money to flow out of risky assets like crypto.
Will the market recover?
While the current correction may be unsettling for many investors, technical indicators on the Bitcoin chart still point to a strong recovery:
Bitcoin is forming a “bullish pennant” pattern, with the pennant representing the previous steep rally and the pennant representing the consolidation correction.
At the same time, a “cup and handle” pattern is also forming — a popular bullish continuation pattern.
Bitcoin remains above its 50-day moving average (MA50) — indicating that the mid-term uptrend has not been broken.
If BTC can break above the strong resistance at $109,300, the market could enter a new bull cycle, leading to a strong recovery for all altcoins.
Conclusion
Although the market is experiencing a significant correction, this does not necessarily signal the end of the uptrend. In a volatile market like crypto, corrections are often an opportunity to restructure demand and prepare for the next uptrend. However, investors need to closely monitor macro and technical fluctuations, especially Bitcoin's support and resistance levels, to make reasonable decisions.
