Despite this milestone, concerns linger about the future as $148 billion worth of stablecoins floods into the market. The rapid rise from $67,000 to $105,198 in just 40 days painted a bullish picture, but there are signs that this rally may face turbulence, after today’s Fed-inspired dump.
Source: BNC Bitcoin Liquid Index
The massive inflow of stablecoins began when Bitcoin hit $88,000. Investors seized the opportunity, locking in a 15% profit. The temptation to cash out is strong, raising questions about how long this rally can hold. Historically, such massive inflows indicate a bullish sentiment, but they also present a high-stakes situation, especially if the urge to sell grows stronger.
Bitcoin’s price has yet to secure a stable footing above $100,000. After briefly touching $104,000, it slipped back to $90,000, a 5% dip. Then, a swift rebound followed, pushing the price to a new all-time high$106,488 earlier this week. But the market remains on edge, with today’s correction back to the $100,000 level keeping investors cautious.
Will $98K to $100K Hold Strong?
Technical analysis shows a critical support range between $98,000 and $100,000. Over 840,000 addresses acquired 715,500 BTC at these levels, creating a solid foundation. However, the market’s resilience is being tested. If this range fails to hold, the consequences could be significant for those who remain long on Bitcoin.
Source: IntoTheBlock
Stablecoin inflows highlight this battle. Around $131 billion flooded into exchanges when Bitcoin hovered between $98,000 and $100,000. Investors appear ready to buy the dip, but hesitation is growing. As prices climb, greed wanes, and retail buyers are reluctant to enter. The fear of overpaying may be keeping them on the sidelines.
Source: CoinMarketCap
Adding to the uncertainty is the fading momentum from the so-called “Trump pump,” which injected $2 billion worth of USDT into the market. This influx pushed Bitcoin to $88,000 in less than a week. Now, with that surge losing steam, the market needs a new catalyst to sustain the upward drive.
However, there is a fear that Bitcoin’s price is too high and that a possible drop will occur before committing more funds. Retail investors, in particular, seem hesitant to buy at current levels. If the $96,000 range holds, it may attract new buyers, but if it breaks, a deeper correction could be on the horizon.
Stablecoin Signals: Bullish or Bearish?
Despite the influx of $148 billion in stablecoins, the outlook remains divided. If holders decide to sell, the question is whether buyers will step in quickly enough to absorb the pressure. The current support between $98,000 and $100,000 is strong, but even strongholds can crumble under enough strain.
If it maintains levels above $100,000, confidence may return. However, any break below this support could lead to sharper declines, testing the patience and risk appetite of even the most optimistic investors. The stakes have never been higher, and with $2 trillion in value on the line, every move matters.
