The Bitcoin Rollercoaster: Is It a Breakout or Just a Bumpy Ride?

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Well, Bitcoin did it again. On Sunday, it shot up to $107,000, only to come crashing down by more than 4% within hours. Classic move—like that person who promises to bring snacks to the party and then shows up empty-handed. The market is now in a frenzy, wondering whether BTC is on the verge of a correction or gearing up for a run at the $109,000 all-time high. This volatility is like a drama series—constant suspense, but no clear plot twists yet. Investors are getting dizzy as they try to make sense of it all.

Glassnode has thrown in a little spice to this equation: Bitcoin’s short-term correlation with gold has dropped to -0.54 over the past 30 days, the lowest since February. In layman’s terms, Bitcoin is trying to be its own thing, no longer linked at the hip to traditional safe havens like gold. It’s like that one friend who insists on going their own way, even if it’s a terrible idea. As Bitcoin hovers around key levels, we’re all waiting to see if it can pull off the breakout of a lifetime—or if the correction will make an appearance.

Bitcoin’s Support Is Sweating It—Is $100K the New $1?

Right now, Bitcoin is living on the edge, hovering near the $100,000 mark like a teenager trying to make it to curfew. After reaching $107,000 over the weekend, it made a sharp 4% retreat. Talk about a mood swing. Investors are starting to get nervous, and who can blame them? This is like getting a flat tire when you’re already late to a meeting. The price is now clinging to short-term support, and if it doesn’t hold, we could be heading back to lower demand zones. So much for that bullish momentum.

However, not all hope is lost. Some traders are still holding on to the dream that a breakout above $105,000 could push BTC into new territory—closer to that elusive $109,000 all-time high. But with no follow-up after Sunday’s brief jump, the market is shaky. Could we be staring at a wider correction before anything meaningful happens? Stay tuned, folks.

In an attempt to add some clarity, Glassnode has delivered a bit more info. Bitcoin’s short-term correlation with gold has dropped to -0.54, signaling that BTC is no longer keeping pace with gold as a safe haven. Meanwhile, its longer-term correlation to gold remains positive—0.39 for the 90-day period and 0.60 for the 365-day period. It’s like Bitcoin’s distancing itself from its more responsible, well-established friends. Crypto is in control now, and speculation is its game.

As Bitcoin keeps consolidating, the market’s gaze is fixed on that $100K support level. If the bulls can keep things above $100K, we might see a fresh attempt to break through the $105K-$109K resistance zone. But if support breaks, we could be looking at a deeper retracement—nothing like a good old correction to mess with your short-term hopes, right?

Bitcoin’s Fakeout: A Classic Move Before the Real Drama

Bitcoin’s price action has been as dramatic as a reality TV show. On the daily chart, it got rejected around $107,000 and swiftly dropped to $103,000. The sudden upward spike? Just a fakeout, as if BTC tried to impress everyone with its performance, only to disappoint at the last minute. The result? A 3.36% pullback in just one day. That’s gotta hurt. BTC is now trading around $102,943, and if you were hoping for some stability, well, this probably isn’t your day.

Despite the drop, there’s still a glimmer of hope for the bulls. If Bitcoin can hold above the critical $100K support, the long-term bullish structure remains intact. The 200-day SMA at $92,801 and the EMA at $88,469 offer deeper support, but the focus right now is on defending that psychological $100K level. A daily close below $100K? Well, that could bring more selling and shake the market’s confidence faster than you can say “crypto winter.”

Volume during the retracement isn’t extreme, which might suggest that this selloff is just part of a broader consolidation. But for BTC to continue its climb to new heights, it’ll need to reclaim the $105,000–$107,000 range. Until then, traders are left watching, hoping, and praying for some price stability above $100K—otherwise, brace yourselves for more turbulence.

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2025-05-20 00:19