Market Sentiment Shifts as Bitcoin Tests Critical Levels

The cryptocurrency market faces heightened volatility as Bitcoin struggles to maintain its position above $105,000. Recent data from Santiment reveals increased whale transactions near the $112,000 mark, potentially signaling profit-taking behavior among large holders. Analysts warn this could trigger a deeper correction phase lasting through mid-June.

Institutional Accumulation Contrasts Retail Caution

Despite short-term uncertainty, institutional players continue accumulating Bitcoin at current levels. MicroStrategy added 705 BTC to its treasury at an average price of $106,495 between May 26-30, while Japan's Metaplanet acquired 1,008 BTC at $108,400 per coin. This institutional demand creates a potential floor beneath the market.

Technical Outlook for Major Cryptocurrencies

Bitcoin (BTC): The $103,000 support level becomes crucial, with breakdown risks extending to $97,000 and potentially $90,000. Conversely, reclaiming $106,000 could reignite bullish momentum toward $130,000.

Ethereum (ETH): Holding above the $2,500 support could propel ETH toward $3,000 if it clears the $2,738 resistance. Failure to maintain this level may see retests of $2,323.

XRP: The $2-$2.65 trading range persists, with breakdown risks to $1.61 if support fails. An inverse head-and-shoulders pattern could emerge if buyers conquer $2.65.

Altcoin Watchlist: Critical Levels to Monitor

BNB: The $634-$693 range dominates trading, with breakout potential toward $761 or downside risks to $580.

Solana (SOL): The $153 support holds the key - a breakdown could see SOL retreat to $140, while holding may trigger consolidation between $153-$185.

Dogecoin (DOGE): Trading below the 50-day SMA suggests bearish control, with $0.16-$0.14 as the next potential support zone.

Market Correlations and Macro Influences

The S&P 500's resilience near its 20-day EMA at 5,817 suggests ongoing risk appetite, while the US Dollar Index's struggle below 100 indicates potential weakness that could benefit crypto assets. These traditional market movements continue influencing digital asset valuations.

Emerging Token Spotlight: Hyperliquid (HYPE)

This newer entrant shows relative strength, bouncing off its 20-day EMA at $31.17. A break above $35.73 could accelerate gains toward $50, while losing the EMA support might trigger a pullback to $28.50.

——Market veterans note this correction phase may create strategic accumulation opportunities—— as long-term blockchain adoption trends remain intact. However, traders should prepare for potential increased volatility around key psychological levels.

【Key Data Points】
• MicroStrategy's Bitcoin holdings now exceed 210,000 BTC
• ETH's $2,500 support represents a 23.6% Fibonacci retracement
• XRP's trading volume has declined 18% during the consolidation phase