Bitcoin and altcoins are crashing as investors ‘are locking profits’

Bitcoin and other altcoins continued their downward trend on Thursday as the recent bullish momentum faded. Bitcoin ( BTC ) dropped briefly below $104,000 as the market capitalization of all coins fell by 1% to $3.27 trillion. Some of the top laggards were altcoins like Fartcoin ( FARTCOIN ), Dogwifhat ( WIF ), Jupiter ( JUP ), and Ethena ( ENA ). Analysts suggest the ongoing pullback is a typical occurrence during bull markets, as some investors begin locking in profits. In a statement to crypto.news, Ryan Lee, Chief Analyst at Bitget Research, said: “After a period of notable gains, many investors are locking in profits, which has triggered short-term sell-offs. This behavior is not unusual in bull cycles, where sharp rallies often lead to a wave of corrections as traders seek to de-risk their portfolios.” Ryan added that the ongoing geopolitical developments like trade tensions from the US had contributed to market uncertainty and triggered a risk-off sentiment. He added that: “While the overall outlook for digital assets remains positive, current price action suggests a cooling period, especially in speculative altcoins that saw outsized gains. Investor sentiment is being recalibrated in response to these developments.” Historically, Bitcoin tends to pull back after reaching a key resistance level, often triggering a broader correction across altcoins. For example, BTC hit a record high of $108,335 in December before retreating to $88,987 in January. It later surged to a new all-time high of $109,300 in the same month. Bitcoin price chart analysis points to an eventual rebound BTC price chart | Source: crypto.news Technical indicators suggest that Bitcoin may be preparing for another rally, which could spark a broader altcoin rebound. On the daily chart, BTC is gradually forming a bullish flag pattern — characterized by a steep vertical rally (the flagpole) followed by a downward-sloping consolidation channel (the flag). This setup is typically viewed as a continuation pattern. Bitcoin has also formed a cup-and-handle pattern, with the recent pullback forming the handle section. The cup features a depth of approximately 30%, or 34,000 points. Using standard technical analysis, the target for a cup-and-handle breakout is calculated by adding the cup’s depth to its upper boundary. In this case, adding $38,000 to the top of the pattern yields a projected target of $146,000. You might also like: Ethereum price forms bullish setups as Wall Street demand gains steam

Source: crypto.news