Bitcoin Holds Above $105K as Market Eyes Long-Term Breakout

The crypto market is showing limited intraday trading opportunities, but long-term analysts suggest it's entering a coiled phase, with key support and resistance levels under watch. Bitcoin (BTC) hovered above $105,000 on Wednesday, maintaining recent gains. Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE), and XRP all posted under 1% returns. Total market capitalization dropped 1.8%.

Nick Ruck of LVRG Research noted the market's sentiment shift reflects optimism amid U.S. economic contraction and ongoing institutional adoption of Bitcoin. He emphasized that while macro uncertainty persists, the long-term crypto outlook remains bullish.

Fineqia’s Matteo Greco highlighted BTC’s 3.1% weekly decline, closing around $105,700 after six weeks of ETF inflows ended with a $150 million net outflow. Despite the dip, BTC exchange reserves continue to fall, suggesting reduced selling pressure. Meanwhile, stablecoin reserves are at multi-year highs, potentially signaling new capital deployment.

Greco also cited Bitcoin’s MVRV ratio at 2.2, below the historical top of 3.7—indicating we’re late in the bull cycle, but not at its peak. Bitunix analysts warned that while the Fed’s dovish stance may support risk assets, dollar volatility remains a concern. They identified $105,000 as a key BTC support level, with $102,700 as a critical line if sentiment turns risk-off.

Should Bitcoin dominance decline, altcoins may rally, a common late-cycle signal. Rising stablecoin reserves and institutional involvement point to a potentially volatile but rewarding summer.

“The positive trend is encouraging for long-term growth,” said Ruck. Investors are watching closely for a breakout that could define the next major crypto phase.