Bitcoin spiked above $107,000 in the early hours of Monday, marking its highest price since January and coming within 2% of the all-time high set at $109,000. The move triggered speculation about a possible breakout – but just a few hours later, the price pulled back sharply and is now trading below $103,000.
Table of Contents
Approaching the High – But Not Breaking It
The rally that took Bitcoin to $107K followed several days of steady gains, with spot demand picking up across major exchanges. Once BTC crossed above $105K, trading activity increased and momentum briefly accelerated.
That rally stalled around $107,000 – a level that sits just below the current all-time high. As price approached this zone, many traders began closing long positions. Resistance near previous highs tends to attract profit-taking, especially from those who entered during the late March and early April consolidation phases.
Read also: Is Bitcoin Really Near Its ATH – Or Is the Dollar Just Weak?
Credit Downgrade Shifts Market Sentiment
The timing of the pullback aligned closely with the reopening of U.S. stock futures on Sunday evening. Futures contracts tied to the Dow, S&P 500, and Nasdaq all fell sharply after ratings agency Moody’s downgraded the U.S. government’s credit score from AAA to AA1.
The move was not unexpected – both Fitch and S&P had issued similar downgrades earlier – but it triggered a fresh wave of selling in equities and futures. Dow futures dropped over 300 points. The S&P 500 lost 1%, and Nasdaq futures slid over 1.3%.
No Panic, No Liquidation Spike
Despite the quick reversal, there is little evidence of panic in crypto markets. Spot volume remained high, but there were no signs of extreme liquidations or abnormal funding rate shifts on major derivatives platforms. CMC Fear and Greed Index stays strong at 71.
The pullback appears driven by macroeconomic sentiment and technical positioning rather than internal crypto market stress.
Bullish Outlook Intact
Despite the current retracement, the overall outlook remains bullish. Bitcoin has consistently held above the $100,000 mark for over a week, with strong support forming in that zone. While the attempt to break the all-time high has temporarily stalled, many traders still expect upward continuation once market sentiment improves.
Several potential catalysts remain in play. Positive regulatory developments or progress in easing global trade tensions could renew buying interest and push Bitcoin toward new highs. For now, the structure remains strong – and for many in the market, this appears to be a pause rather than a reversal.
Test your knowledge in our quiz: How Well Do You Know Memecoin Animal Mascots?
