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The market is cooling down: Bitcoin is falling from its peak, with altcoins following suit

Market and Events: The market is cooling down: Bitcoin is falling from its peak, with altcoins following suit

After a rapid surge to a historic high of $126,000, Bitcoin has corrected sharply. It is now trading around $122,000, losing about 2-3% per day.

Analysts call this a natural respite after overheated growth and excitement around crypto #ETFs. According to CoinDesk, a strong support zone is in the $118,000–$120,000 range, where buyer activity is already visible.

#Altcoins followed the same pattern: XRP, ADA, DOGE, SOL, and AVAX fell by 4-7%, indicating profit-taking after a multi-week rally. The decentralized finance sector is also showing the first signs of declining liquidity, with users transferring stablecoins to Bitcoin in anticipation of market stabilization.

According to analysts at #CoinShares and #Glassnode, the short-term correction does not threaten the long-term bullish trend. On the contrary, such movements help to “cool down” and clear the market of speculators before a new round of growth. As long as institutional interest remains strong and ETF flows remain at record levels, the fundamental prerequisites for growth remain in place.

Nevertheless, #traders are advised to keep their finger on the pulse. The coming days will be a test of market confidence. A break below $118,000 could signal a deeper #correction, while a rebound from current levels would reinforce the bullish scenario. The crypto market is once again balancing between euphoria and fear, and it is in this zone of uncertainty that new impulses are born.

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