Bitcoin and other altcoins continued their downward trend on Thursday as the recent bullish momentum faded.
Bitcoin (BTC) dropped briefly below $104,000 as the market capitalization of all coins fell by 1% to $3.27 trillion. Some of the top laggards were altcoins like Fartcoin (FARTCOIN), Dogwifhat (WIF), Jupiter (JUP), and Ethena (ENA).
Analysts suggest the ongoing pullback is a typical occurrence during bull markets, as some investors begin locking in profits. In a statement to crypto.news, Ryan Lee, Chief Analyst at Bitget Research, said:
“After a period of notable gains, many investors are locking in profits, which has triggered short-term sell-offs. This behavior is not unusual in bull cycles, where sharp rallies often lead to a wave of corrections as traders seek to de-risk their portfolios.”
Ryan added that the ongoing geopolitical developments like trade tensions from the US had contributed to market uncertainty and triggered a risk-off sentiment. He added that:
“While the overall outlook for digital assets remains positive, current price action suggests a cooling period, especially in speculative altcoins that saw outsized gains. Investor sentiment is being recalibrated in response to these developments.”
Historically, Bitcoin tends to pull back after reaching a key resistance level, often triggering a broader correction across altcoins. For example, BTC hit a record high of $108,335 in December before retreating to $88,987 in January. It later surged to a new all-time high of $109,300 in the same month.
Bitcoin price chart analysis points to an eventual rebound
Technical indicators suggest that Bitcoin may be preparing for another rally, which could spark a broader altcoin rebound. On the daily chart, BTC is gradually forming a bullish flag pattern — characterized by a steep vertical rally (the flagpole) followed by a downward-sloping consolidation channel (the flag). This setup is typically viewed as a continuation pattern.
Bitcoin has also formed a cup-and-handle pattern, with the recent pullback forming the handle section. The cup features a depth of approximately 30%, or 34,000 points.
Using standard technical analysis, the target for a cup-and-handle breakout is calculated by adding the cup’s depth to its upper boundary. In this case, adding $38,000 to the top of the pattern yields a projected target of $146,000.
