Bitcoin Price Retreat Sparks Talk of ‘Deeper Correction’ as Bulls Pause

Bitcoin has pulled back sharply, sparking renewed caution from analysts who warn that the digital asset may be headed for a deeper correction before resuming its bullish trajectory.

BTC/USD fell by 8% as of May 31, retreating to levels below its previous all-time high.

This decline leaves the token nearly $9,000 below its recent record peak, putting short-term sentiment to the test.

Demand Metrics Signal a Cooling Trend

A report from CryptoQuant shared with Cointelegraph suggests that Bitcoin’s demand growth may be hitting a temporary ceiling.

The analytics platform estimates that Bitcoin demand has increased by 229,000 BTC in the last 30 days, nearing the 279,000 BTC peak seen in December 2024.

“Some of Bitcoin’s demand metrics may be reaching a short-term top, which could imply a pause in the current rally,” the report stated.

It also noted that whale balances have risen by 2.8% over the past month, a pattern often followed by reduced accumulation from major holders.

Additionally, average unrealized profits hovered around 30% when prices neared $111,000—another sign of an imminent slowdown.

Analysts Eye Key Technical Levels

Prominent trader Mags highlighted the importance of the upcoming weekly candle close.

“On the daily chart, BTC has broken below the previous all-time high and is facing rejection at that same level,” Mags observed.

“This might look like the start of a deeper correction.”

If Bitcoin closes the week below the December 2024 high of $104,450, it may form a bearish pattern before climbing again, he added.

Bull Market Outlook Remains Intact for Now

Despite the current retreat, broader sentiment remains optimistic.

Trader Aksel Kibar said the bull market structure is still intact, provided prices remain above $73,700.

He reiterated his 2025 target of $137,000 for BTC, aligning with a midterm bullish outlook.

CryptoQuant analysts see $120,000 as a key level where many investors might choose to lock in profits.

While the path forward could involve further short-term losses, most analysts agree the bull market has not been derailed.

No information published in Crypto Intelligence News constitutes financial advice; crypto investments are high-risk and speculative in nature.

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