Bitcoin Hits New Local High, Analysts Warn of Sell-Off Risk

Bitcoin has recently reached a new local all-time high, generating both enthusiasm and caution among market analysts. The cryptocurrency's upward momentum has shown signs of slowing, leading top analysts to issue warnings about a potential sell-off. Glassnode, a leading blockchain analytics firm, has identified $97,600 as a critical support level for Bitcoin. Holding above this level is vital for maintaining the cryptocurrency's bullish structure. A failure to do so could result in a significant correction, potentially invalidating the current uptrend.

Crypto trader Atlas emphasized the importance of locking in profits at the current cycle top. He highlighted a well-timed call from four weeks ago, urging followers to “buy the dip.” Now, Atlas advises selling into strength as Bitcoin pushes into its ATH zone. A chart shared in his post humorously illustrates the emotional pitfalls of retail behavior, where users tend to buy late and sell even later — missing the peak despite good entry points. Atlas wrote, “Now I’m telling you to SELL into this ATH,” adding that failing to do so could leave traders underwater in the next phase. He positions timely exits as the key to outperforming the broader market cycle.

Meanwhile, Ali Martinez issued a technical warning based on intraday price structure. According to Ali, Bitcoin must hold above $108,300 to preserve bullish momentum. A drop below this level could open the door to a decline toward $107,000. The accompanying TradingView chart displays tightening price action, reinforcing the critical nature of near-term support. Both analysts present a cautious outlook despite recent gains. While Atlas focuses on cycle timing and behavioral patterns, Ali points to clear technical thresholds that traders should monitor closely.

As Bitcoin enters a potential turning point, maintaining awareness of both psychological levels and key chart zones will be crucial for those looking to optimize gains or manage downside risk. The broader crypto market has been abuzz with predictions about Bitcoin's next move. Some analysts believe that the current market dynamics could push Bitcoin to set a new all-time high. However, others are more cautious, pointing to signs of weakening momentum and the potential for a sell-off. The cooling inflation and ongoing U.S.-China trade talks have been cited as potential catalysts for a rally toward new highs. Yet, the market's inability to firmly anchor above $110,000 reflects some uncertainty, with investors closely monitoring price movements for signs of sustainable momentum.

The recent rally in the crypto market has been driven by a combination of factors, including regained investor confidence and positive news from regulatory bodies. The SEC chairman's favorable comments on decentralized finance (DeFi) have been particularly noteworthy, contributing to a significant rebound in the market. However, the market's volatility remains high, and the ability of flagship assets like Bitcoin to consolidate their support levels will be crucial moving forward. Investors are also keeping a close eye on key support and resistance levels. Bitcoin's inability to firmly anchor above $110,000 has created strong resistance at this level, with numerous short orders placed at this price point. However, Bitcoin has been tracking M2 liquidity for months, indicating a major push beyond $114,000 towards June 15-20. The upcoming CPI data release is expected to influence market sentiment, with stronger-than-expected readings potentially cooling the market and diminishing the likelihood of a near-term Fed rate cut.

In conclusion, while Bitcoin's recent rally to a fresh local all-time high has sparked excitement, analysts are warning of potential risks ahead. The cryptocurrency's ability to maintain key support levels will be crucial in determining its future trajectory. Investors are advised to closely monitor price movements and key economic indicators, as the market's volatility remains high.