The cryptocurrency market is experiencing a notable pullback as Bitcoin shows signs of entering a higher degree correction following its impressive rally to all-time highs above $107,000. This morning, crypto traders are witnessing a downward movement that could signal a more extended consolidation period before the next bullish phase begins.
Bitcoin’s Technical Picture
Bitcoin has displayed a clear five-wave upward pattern on the 4-hour timeframe, which typically indicates strong bullish momentum. However, the cryptocurrency has now reversed course and appears to be forming what technical analysts call an “ABC correction.” This correction could potentially push Bitcoin’s price back to the support zone between $97,000 and $93,000 .
The recent price action suggests that after reaching June highs above $107,000, Bitcoin found temporary support near the 0.382 Fibonacci retracement level at approximately $97,663 before showing signs of reversal . This technical behavior aligns with typical market cycles where periods of rapid growth are followed by consolidation phases.
Broader Crypto Market Implications
The total cryptocurrency market capitalization chart indicates that the entire crypto space may remain in consolidation within this correction pattern, potentially retesting the $3.0T to $2.8T support zone before bulls regain control of the market momentum.
Interestingly, while Bitcoin undergoes this correction, we might see a temporary recovery in what analysts call “wave B,” during which certain altcoins could perform relatively well . This is supported by the TOTAL3ESBTC ratio chart, which measures altcoin market capitalization against Bitcoin and suggests that altcoins may soon begin outperforming Bitcoin.
Potential Altcoin Season Ahead?
The technical patterns forming on the TOTAL3ESBTC weekly chart indicate that altcoins could be completing the final subwave of a larger corrective pattern. This completion might trigger a strong rally similar to what the market experienced in early 2021 – a period often referred to as “altseason” when alternative cryptocurrencies significantly outperformed Bitcoin .
According to recent price predictions, Bitcoin might trade within a wide range by the end of June 2025, with some experts eyeing potential targets of $125,000 or even higher by year-end . More optimistic forecasts suggest Bitcoin could reach as high as $137,017 this month, though it’s not expected to drop below $105,036 .
What This Means for Investors
For crypto investors, this correction represents a natural part of market cycles rather than a reason for alarm. The Elliott Wave patterns suggest that after this consolidation phase completes, Bitcoin and the broader crypto market could resume their upward trajectory.
Traders should note that while technical analysis provides valuable insights, cryptocurrency markets remain highly volatile and unpredictable. The Bitcoin Rainbow Chart, a popular prediction tool, illustrates this uncertainty by forecasting a potential price range from $33,670 to $381,342 by June 30, 2025 .
As always, investors should approach the cryptocurrency market with appropriate risk management strategies and consider multiple factors beyond technical patterns when making investment decisions.
