Bitcoin may be nearing its all-time high of $111,970, but crypto analysts warn that a significant breakout lacks fundamental backing.
“The risk of a short-term pullback is growing, particularly without a strong catalyst to drive Bitcoin clearly past its current all-time high,” Bitfinex analysts noted in a report on Monday.
Bitcoin Investors Face a Tough Decision as Price Nears All-Time High
“Without a significant macro or structural catalyst, Bitcoin remains susceptible to short-term pullbacks, especially as long-term holders begin to take profits,” the analysts stated.
They noted that Bitcoin holders now face a pivotal decision on whether to sell.
“Investors who bought in during Q1 2025 and held through the steep drop below $80,000 are now being tested, as the price stalls near all-time high levels,” they added.
In the first quarter of 2025, Bitcoin dipped to a low of $78,513. Just three months later, it’s trading at $109,519, according to CoinMarketCap data — a 39% gain for investors who bought the dip.
Analysts noted that the decisions made by long-term holders at this stage “will help define the next leg of the market structure.” They cautioned that a sudden wave of profit-taking could trigger an extended consolidation period.
Such phases aren’t uncommon for Bitcoin after reaching new all-time highs. For instance, after hitting a peak of $73,679 in March 2024, Bitcoin entered a prolonged consolidation, fluctuating within a $20,000 range until Donald Trump’s presidential election win in November.
$1B in Short Positions at Risk as Bitcoin Nears All-Time High
Although Bitcoin is just 2.2% below its all-time high of $111,970, skepticism remains among traders. According to CoinGlass data, around $1.08 billion in short positions are at risk of liquidation if the price reaches that level.
Analysts are closely watching macroeconomic factors, including the U.S. Federal Reserve’s upcoming interest rate decision and potential policy shifts related to President Donald Trump’s proposed tariffs.
Analysts Set Their Sights on Upcoming Fed Decision
The Federal Reserve is scheduled to announce its next interest rate decision on June 18 — a key event closely watched by market participants for macroeconomic cues.
Rate cuts are generally seen as bullish for risk-on assets like Bitcoin and other cryptocurrencies.
Meanwhile, Swyftx lead analyst Pav Hundal told Cointelegraph that the ongoing uncertainty surrounding U.S. President Donald Trump’s tariff policies poses the biggest threat to Bitcoin bulls in the near term.
“The greatest risk for bullish investors right now is that nothing changes over the next two months, and we remain stuck in a cycle of endless tariff ultimatums,” Hundal said.
