Bitcoin is approaching its all-time high (ATH) of $111,970, but analysts caution that there is little fundamental support for the cryptocurrency to exceed this level significantly.
Bitfinex analysts highlighted the growing risk of a short-term correction without a strong catalyst to push Bitcoin beyond its ATH. They noted that, in the absence of macroeconomic or structural positive triggers, Bitcoin could face downward pressure, especially as long-term holders may choose to sell.
The analysts pointed out that holders who acquired Bitcoin during Q1 2025, including those who bought near the $78,513 low, are now confronted with the decision to sell or retain their positions as prices stabilize around the ATH. Bitcoin traded at $109,519 at the time of the report, marking a 39% gain since the Q1 low.
Decisions by long-term holders will influence Bitcoin’s future market structure. A sudden sell-off could result in an extended consolidation phase. Historically, Bitcoin tends to consolidate after reaching new ATHs, as seen in March 2024 when it peaked at $73,679 before fluctuating within a $20,000 range until November.
Despite trading just 2.2% below its ATH, over $1 billion in short positions are at risk of liquidation if Bitcoin surpasses $111,970, according to CoinGlass data.
Market watchers are focusing on upcoming macroeconomic events such as the U.S. Federal Reserve’s interest rate decision scheduled for June 18 and ongoing uncertainties around U.S. tariff policies under President Donald Trump.
Interest rate cuts by the Fed are generally seen as positive for risk assets like Bitcoin. However, analysts like Pav Hundal from Swyftx see continued tariff uncertainty as a major risk that could trap Bitcoin in a sideways trading pattern over the next two months.
This article does not constitute investment advice. All trading involves risk, and readers should perform independent research before making financial decisions.