Bitcoin Hovers Above $105,000 After $1 Billion Sell-Off Ether Leads Gains With 4.5% Increase

Bitcoin's price hovered above $105,000 on Tuesday, demonstrating a steady recovery after a significant sell-off over the weekend and Monday. This sell-off resulted in nearly $1 billion in liquidations, causing some unease among traders. Despite this, Bitcoin's resilience has impressed many, as it has managed to maintain its position above the $105,000 mark.

Ether, the world's second-largest token, led the gains among major cryptocurrencies with a 4.5% increase. This surge came as the blockchain’s Foundation restructured its staffing to focus more on protocol developments. This move has boosted bullish sentiment for Ether, as it navigates a competitive and crowded network landscape.

Dogecoin followed with a 3% rise, while other major cryptocurrencies such as Solana’s SOL, Cardano’s ADA, XRP, and BNB Chain’s BNB also saw gains of up to 2.5%. The broad-based CoinDesk 20 (CD20), an index tracking the largest tokens by market cap, rose by 2%.

After weeks of gains, Bitcoin's latest price action has traders closely monitoring for signs of a potential cooling-off period. Some traders are becoming cautious as technical signals suggest that the rally may be losing momentum. Ryan Lee, Chief Analyst at Bitget Research, noted that Bitcoin hovering around the $105,000 range could be a natural cooling period after a strong rally. He predicted that Bitcoin could consolidate between $103,000 and $108,000, with $100,000 acting as psychological support. If this level fails, downside targets near $97,000–$93,000 may be tested. Lee also mentioned that on-chain data shows continued whale accumulation, which is typically a bullish sign and could offer an entry point during any correction.

For Ether, Lee observed that repeated rejections and long upper wicks around the $2,800 level indicate hesitation. He stated that while the overall strength remains intact, momentum is capped unless Ether decisively breaks above $2,810. The broader outlook for Bitcoin remains solid on a macro basis, with Bitcoin being a strong outperformer year-to-date compared to equities. However, there are short-term signs of potential challenges ahead, as original buyers and profit takers continue to sell against mainstream buying.

Geopolitical risks continue to influence market sentiment. Fresh tariff headlines and a tense trade backdrop between the U.S. and China have traders preparing for more volatility, with key policy deadlines in early July on the horizon. Despite these challenges, Bitcoin has shown its resilience and maintained its position at the top of the market.