XRP Declines 4% While Bitcoin Traders Show Caution Around $105K Price Barrier

Bitcoin rebounds above $104K as XRP dips amid cautious trading near $105K resistance

Bitcoin held firm above the $104,000 mark after briefly testing the psychologically important $100,000 level earlier in the week. The cryptocurrency’s recent strong momentum appears to have stalled as traders eye the crucial $105,000 resistance point, while altcoins like XRP slipped, with the token losing 4% amid broader market pressure.

This pause in Bitcoin’s rally comes amid a mixed bag of U.S. economic data releases, including weaker-than-expected retail sales and signs of slowing manufacturing activity. Despite these signals, traditional markets remained relatively stable, with the S&P 500 gaining 0.4% and the Nasdaq staying flat.

Bitcoin prices dipped to approximately $101,000 in early U.S. trading before climbing back above $103,000, ending the day modestly lower. Altcoins underperformed, as reflected by the 3% decline in the CoinDesk 20 Index, with tokens such as Aptos, Avalanche, and Uniswap experiencing losses in the 6-7% range.

Market experts recommend viewing the recent retracement as a normal correction within a sustained upward trend. Ruslan Lienkha, head of markets at YouHodler, noted that profit-taking after an extended rally, coupled with cautious sentiment triggered by the U.S.-China tariff postponement, has temporarily impacted risk assets, including Bitcoin.

Kirill Kretov of CoinPanel added that price swings below 5% often constitute market noise rather than a trend reversal, particularly given the current low liquidity environment that magnifies price moves.

K33 Research analyst Vetle Lunde highlighted that Bitcoin’s derivatives market shows defensive positioning, a sign that contrasts with behaviors observed near market tops, suggesting the potential for further gains.

Steno Research pointed to expanding private credit in Western markets as an underappreciated factor supporting the crypto rally. Unlike previous bull runs driven by aggressive central bank money printing, this cycle is fueled by quieter credit growth amid ongoing quantitative tightening by the Fed and ECB.

Looking ahead, analysts project that financial conditions will remain favorable through June and early July, driven by a weakening U.S. dollar. However, they caution that market dynamics may shift by late summer as monetary easing slows.

While traders remain cautious around the $105,000 resistance level, underlying fundamentals and improving macroeconomic trends suggest Bitcoin’s rally still has momentum heading into the summer months.