XRP, DOGE, SOL Experience Pullbacks; Bitcoin’s Record High Suggests Further Upside

Bitcoin Pauses Near $121.5K as Altcoins See Profit-Taking

Bitcoin (BTC) pulled back slightly to around $121,500 on Monday, following a weekend surge above $125,000. The brief retreat comes as traders take profits after record highs, while altcoins like DOGE, ADA, XRP, and BNB also faced downward pressure.

BNB Shines Amid Rotations
BNB has been a notable outperformer, rising over 17% in the past week to roughly $1,184. Analysts say this reflects ongoing rotations within crypto ecosystems, with capital moving from BTC to high-demand assets.

Bitcoin Bull Run Not Over
Despite the pullback, analysts remain confident in Bitcoin’s upward trajectory. The recent rally has been driven by strong spot demand, ETF inflows, and shrinking exchange balances, which recently hit a six-year low at 2.83 million BTC. Record inflows into U.S.-listed ETFs, including $3.2 billion last week alone, have fueled the rally.

Market indicators, including the Fear and Greed Index at 64, suggest that sentiment remains elevated but not euphoric, leaving room for continued upside without excessive leverage.

Altcoin Pressure
Profit-taking weighed on major altcoins: DOGE and ADA led declines, XRP, BNB, and TRX fell up to 2%, while ETH dipped just over 0.5%. Analysts note that these movements reflect normal market rotation rather than a shift in the broader bull trend.

Stablecoin Supply Supports Bulls
The expansion of stablecoin supply—approximately $45 billion last quarter, mostly on Ethereum—provides liquidity to absorb profit-taking and sustain market momentum. Coupled with ongoing uncertainty from the U.S. government shutdown, these factors support a bullish case for Bitcoin and the broader crypto market.

Key Levels: $125K in Focus
Analysts highlight $125,000 as a critical level. Nick Ruck of LVRG views recent activity as institutional hedging and ETF-driven accumulation, while FxPro’s Alex Kuptsikevich warns of long-term holders selling near these highs since July.

“The next challenge is testing historical highs around $125K,” Kuptsikevich said. “How price reacts here will indicate whether supply dominates or if fresh demand can push Bitcoin higher.”

For traders, the path forward remains clear: a rapid breach of $125,000 followed by rejection could trigger further profit-taking, whereas a steady approach supported by institutional demand could allow Bitcoin to extend its rally.