Bitcoin steadies above $104,000 as XRP slides amid trader caution near key resistance levels

After testing the $100,000 milestone earlier in the week, Bitcoin has stabilized just above $104,000, but resistance around the $105,000 mark is causing traders to tread carefully. Meanwhile, XRP saw a sharp 4% decline as the broader crypto market experienced a modest pullback.

The recent Bitcoin rally, which pushed prices close to all-time highs, has paused as investors take profits amid mixed signals from the broader economy. Key U.S. data showed weaker retail sales and softer manufacturing indexes, leaving markets slightly uncertain but largely stable.

Bitcoin’s price dipped to around $101,000 during early U.S. trading but rebounded to maintain its position above $103,000. The altcoin market fared worse, with the CoinDesk 20 Index dropping 3%, led by tokens like Aptos, Avalanche, and Uniswap, each falling between 6% and 7%.

Analysts urge investors not to be alarmed by the short-term correction. Ruslan Lienkha, YouHodler’s chief of markets, described the pullback as a healthy pause within an ongoing medium-term uptrend. He noted that the shift in sentiment comes as traders secure gains following weeks of strong performance and as U.S.-China tariff delays temper risk appetite.

Kirill Kretov of CoinPanel emphasized that moves under 5% often reflect routine market noise and profit-taking rather than a change in trend. The thin liquidity in the market can amplify these fluctuations, leading to sharp but temporary corrections.

K33 Research’s Vetle Lunde pointed out that Bitcoin’s recent period of below-neutral funding rates among derivatives traders signals a defensive stance rather than exuberance. This pattern contrasts with behavior typically seen near market peaks, supporting optimism for further upside potential.

Backing the positive outlook, Steno Research highlights a quieter but steady expansion of private credit in the U.S. and Europe as a key driver behind crypto’s rally — a shift away from the central bank liquidity injections that fueled previous bull markets. With projections of a weaker U.S. dollar into the summer, conditions remain favorable for Bitcoin price gains through June and early July, though the outlook may become more uncertain by late summer.

Overall, while traders eye resistance near $105,000 with caution, the market fundamentals continue to support a cautiously optimistic outlook for Bitcoin and the broader crypto market.

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