Bitcoin Faces $105K Resistance as Crypto Market Sees $43B Pullback; Altcoins Display Weak Momentum, Lido Recovers After Exploit
The cryptocurrency market experienced a sharp correction, losing $43 billion and dropping to a total market capitalization of $3.28 trillion. Bitcoin (BTC) surged to challenge the key $105,000 resistance for the first time since February, but failed to sustain gains, retreating to around $103,900. Technical indicators such as the Relative Strength Index (RSI) rose above 70, signaling overbought conditions and an increased risk of short-term consolidation or potential downside. Altcoins mirrored this loss of momentum: Arbitrum (ARB) declined by 0.72% and failed to hold above the $0.50 breakout, with trading volumes declining and technical signals suggesting ongoing consolidation unless key resistance or support is broken. Meanwhile, Lido Finance (LDO) responded decisively to a minor oracle exploit, which resulted in the loss of 1.46 ETH, by rotating affected addresses and ensuring Ethereum staking operations continued uninterrupted; LDO price stabilized above $1 with technicals indicating recovery since May. With Bitcoin’s $105,000 level being a crucial resistance, a clear breakout could open the path to $109,588, while a rejection may lead to a test of $100,000 support. The breakdown in correlation between Bitcoin and altcoins, along with volatility, suggests a rotation of capital and calls for cautious trading, as analysts warn that overextension could precede deeper corrections.
Bearish
Bitcoin’s failure to break and hold above the $105,000 resistance, combined with elevated RSI readings signaling overbought conditions, points toward potential price consolidation or a corrective pullback. Altcoins are also exhibiting weak momentum, with declining volumes and no clear breakout. The technical breakdown in correlation between Bitcoin and altcoins, noted by analysts, historically suggests an increase in volatility and the possibility of deeper corrections if market enthusiasm continues to fade. While capital inflows show market interest, the inability to sustain key breakouts and the warning signs from technical indicators favor a cautious, short-term bearish outlook for both Bitcoin and the broader crypto market.