Bitcoin may be on the verge of reclaiming its all-time high of $111,970, but crypto analysts say there’s little fundamental support for the asset to meaningfully break above the level.
“The risk of a short-term correction continues to build — especially in the absence of a strong catalyst to push Bitcoin decisively above the current all-time high,” Bitfinex analysts said in a report on Monday.
Bitcoiners are faced with a tough call as Bitcoin approaches ATH
“Without a strong macro or structural upside catalyst, Bitcoin is vulnerable to short-term corrections, particularly as long-term holders distribute into strength,” they said.
The analysts said that Bitcoin (BTC) holders are now faced with a crucial decision whether to sell off or not.
“Market participants still holding coins from Q1 2025, and who held through the sharp drawdown below $80,000, are now being tested as the price churns sideways near ATH levels,” they said.
During the first quarter of 2025, Bitcoin hit a low of $78,513. It is trading at $109,519 at the time of publication, just three months later, according to CoinMarketCap data, placing investors who bought at that low point up by 39%.
The analysts said whatever the long-term holders decide to do “will help define the next leg of the market structure.” They warned that a sudden sell-off by Bitcoin long-term holders may lead to a prolonged consolidation phase.
It isn’t unusual for Bitcoin to enter a consolidation phase after reaching new all-time highs. In March 2024, Bitcoin reached an all-time high of $73,679 before entering a consolidation phase, swinging within a range of around $20,000 until Donald Trump was elected as US president in November.
$1 billion in short positions at risk if Bitcoin reclaims ATHs
Despite being 2.2% off Bitcoin’s all-time high of $111,970, not all traders are convinced, with approximately $1.08 billion in short positions set to be liquidated if it hits the price point, per CoinGlass data.
Analysts are currently eyeing macro events such as the US Federal Reserve’s upcoming interest rate decision and developments related to US President Donald Trump’s tariff policies.
Analysts are eyeing the next Fed decision
The Federal Reserve is set to announce its next interest rate decision on June 18, a key event that many market participants watch for macroeconomic signals.
Interest rate cuts are considered a bullish indicator for risk-on assets like Bitcoin and other cryptocurrencies.
Related: Bitcoin price will see ‘short-term correction’ before $140K: Analysts
Meanwhile, Swyftx lead analyst Pav Hundal recently told Cointelegraph that the ongoing loop of tariff uncertainty from US President Donald Trump is the most significant risk for those betting big on Bitcoin over the next two months.
“The biggest threat to bulls right now is that nothing changes over the next two months, and we just stay trapped in this cycle of endless tariff ultimatums,” Hundal said.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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