Bitcoin has retreated from its record peak of $118,972 amid typical profit-taking activity, stabilizing near $115,692 after dipping to $114,518. This pullback reflects standard market volatility but is unlikely to develop into a substantial correction given strong underlying conditions, according to analysts.
Noted analyst Justin Spittler suggests Bitcoin could retest the $113,000 support level, though a deep retracement appears improbable due to robust market fundamentals. Concurrently, major altcoins demonstrated resilience during Bitcoin’s correction, with Ethereum gaining nearly 1% against Bitcoin and climbing above $3,700.
Market volatility remains elevated as Bitcoin’s open interest in derivatives markets reached a historic $44.5 billion, signaling potential for significant price swings. Analysts caution that a decline below $114,000 could force $1.78 billion in long position liquidations, potentially intensifying short-term downward pressure on prices.