Crypto Market Pauses After Record Run, Eyes on Potential Pullback Amid Profit-Taking

Key Takeaways:

*Despite strong risk appetite across equities—with the S&P 500 and Nasdaq hitting fresh highs—major digital assets have begun to trade in a tighter range.

*ETF inflows into BTC and ETH have remained steady, reinforcing confidence in the long-term outlook for crypto assets and suggesting sustained demand from institutional investors.

* With digital assets stretched after an extended rally, some traders are eyeing potential profit-taking and technical retracements.

Market Summary:

The cryptocurrency market has paused its blistering rally, with Bitcoin (BTC) recently touching a record high of $123,231 before retreating alongside other major digital assets such as Ethereum (ETH) and Ripple (XRP). After weeks of bullish momentum, the sector now appears to be entering a consolidation phase, prompting speculation over whether the next move will extend the rally or trigger a meaningful correction.

While broader market sentiment remains risk-on—supported by easing concerns over U.S. tariff policy—cryptocurrencies have begun to trade sideways. Wall Street’s appetite for risk remains strong, as evidenced by the S&P 500 and Nasdaq notching new all-time highs. The VIX index, often referred to as Wall Street’s “fear gauge,” has fallen to its lowest level since February, reflecting a surge in investor confidence that could help cushion digital assets from a deeper pullback.

Adding to the supportive backdrop, institutional demand for crypto remains firm. Both BTC and ETH ETFs continue to attract steady net inflows, reinforcing the long-term bullish thesis for the space.

However, despite the positive fundamentals and robust market sentiment, traders should be alert to potential short-term headwinds. The recent rally may invite profit-taking, particularly after reaching levels not seen in years. In addition, technical gaps left during the uptrend may soon be tested, increasing the likelihood of a near-term pullback.

While the long-term trajectory for crypto remains constructive, market participants are advised to monitor signs of consolidation and manage risk accordingly.

Technical Analysis

BTC, H4

Bitcoin (BTC) has traded sideways over the past two weeks after reaching an all-time high above the $123,000 mark. The cryptocurrey found near-term support and broke out of a brief downtrend channel, now consolidating within a tight range between $116,000 and $120,800—reflecting a lack of clear directional bias.

The latest price action shows BTC finding firm support above the $118,000 level, as evidenced by candlesticks printing long lower wicks and closing higher—typically a bullish technical signal. A sustained hold above this support zone may strengthen the bullish case and pave the way for a potential breakout toward recent highs.

However, momentum indicators are currently offering limited conviction. The Relative Strength Index (RSI) remains near the midpoint, signaling neutral momentum. Similarly, the MACD is trending flat along the zero line, underscoring the absence of a decisive trend.

While the overall structure suggests BTC is stabilizing, traders may need confirmation via a breakout above the $120,800 resistance to validate renewed upside momentum. Until then, the crypto remains in consolidation mode with both bullish and bearish scenarios still on the table.

Resistance Levels: 120,140.0, 122,630.00

Support Levels: 118,500.00, 116,740.00

ETH,H4

Ethereum (ETH) surged nearly 40% after breaking out of a multi-week consolidation range that spanned from May through June. However, as the cryptocurrency approached the psychological $4,000 threshold, bullish momentum has notably eased, triggering a mild technical pullback.

In the latest session, ETH retraced roughly 5% to hover near the $3,800 level. Despite the pullback, the price remains supported above the 38.2% Fibonacci retracement level, suggesting the broader uptrend remains intact—for now.

Momentum indicators, however, are beginning to flash caution. The Relative Strength Index (RSI) has retreated sharply from overbought territory and now sits below the midline, signaling weakening buying pressure. Meanwhile, the MACD has formed a bearish crossover and is nearing the zero line—a break below which could confirm a shift toward a more bearish trend.

While the technical structure still leans bullish above key support, traders should monitor momentum indicators closely, as further weakness could undermine ETH’s current trajectory.

Resistance Levels: 3710.60, 4066.60
Support Levels: 3333.50, 3025.20