Bitcoin’s price action over the past few weeks has investors speculating whether the recent pullback from its all-time high is merely a pause before another leg up–or a sign of deeper corrections ahead.
As BTC trades around $105,396.85, roughly 5% below its ATH of $111K set just 13 days ago, on-chain metrics paint a promising picture.
Retail Demand Cools; Analyst Sees Room for Further BTC Upside
According to analyst “caueconomy,” retail demand, measured by Bitcoin transactions below $10,000, has fallen 2.45% over the past 30 days. Historically, such subdued retail activity has not accompanied major market tops, which are typically characterized by frenzied buying from smaller investors.
Retail euphoria has not yet arrived, and on-chain demand is falling
“In the last 30 days, retail demand has fallen by approximately 2.45%, indicating that smaller investors have not yet reached a euphoric dynamic in the current market.” – By @caueconomy pic.twitter.com/I5GuvtoH14
— CryptoQuant.com (@cryptoquant_com) June 4, 2025
The analyst suggests that the recent price surge for Bitcoin has yet to ignite the kind of emotional buying that marks long-term tops, leaving room for further appreciation if macro and liquidity conditions remain favorable.
Retail demand has historically served as a coincident or even leading indicator of price movements, and the modest uptick in late May did precede the recent price bounce.
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Support Zone Watch: $96,700 as a Crucial Pivot Level
Another analyst, “abramchart,” has highlighted $96,700 as a critical support level for Bitcoin, coinciding with the average purchase price of short-term holders. Should the current dip extend further, this zone is likely to serve as a high-probability rebound point. It also aligns with the bottom range of Bitcoin’s previous consolidation structure, making it technically and psychologically significant.
Also, with Bitcoin dominance on the rise, any BTC correction is expected to impact altcoins and Ethereum, as capital tends to rotate out of smaller-cap assets during Bitcoin-led pullbacks. This dynamic often leads to temporary underperformance across the altcoin market until Bitcoin stabilizes and investor risk appetite returns.
Bitcoin Technicals Show Short-Term Pressure Building
The daily chart below shows prices slipping back toward the midline of the Bollinger Bands (BB), which currently rests around $106,674. This midline often acts as dynamic support or resistance, and with BTC now slightly under it, a retest of the lower BB band at $102,270 becomes a likely short-term target unless bulls reassert quickly.
Source: TradingView
Meanwhile, the Relative Strength Index (RSI) has declined from near-overbought levels (above 70) to just below 54, with the RSI trending down and crossing beneath its moving average (yellow line).
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This bearish RSI crossover suggests weakening momentum and hints at the possibility of further downside before any potential rebound.
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