Is Bitcoin About to Crash Again?

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Is Bitcoin About to Crash Again?

Bitcoin’s rebound off recent lows may have given bulls brief relief, but the data now suggests that the latest move could be more about resistance than recovery. Price action has stalled near the $106,000 mark, and both technical indicators and investor behavior are starting to align around a common concern: the top may already be in.

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On June 3, Bitcoin was trading around $106,000 — up roughly 3% from weekend lows — but that recovery is already facing tough resistance, and traders are starting to shift from accumulation to profit-taking. That shift, when paired with broader on-chain trends, could set up Bitcoin for another pullback.

Momentum Fades as Bitcoin Buyers Step Back

According to data from Glassnode, the pool of momentum buyers — investors who typically accumulate during uptrends — is shrinking. At the same time, there’s been a sharp increase in profit-taking behavior, with more holders selling into strength rather than building positions.

Momentum, as measured by Relative Strength Index (RSI), tells the story clearly. RSI for buying activity has dropped to 20, while RSI for selling has surged to 77. That imbalance typically shows up near local market tops, when traders start locking in profits instead of chasing further upside.

These behavioral cues suggest that confidence in continued upside is softening, even with Bitcoin prices still near recent highs.

BTC Profit-Taking Accelerates in an Overheated Market

Bitcoin’s supply in profit — the percentage of tokens currently held above their cost basis — remains elevated at 96%, based on CryptoQuant data. Historically, this level of unrealized gain often marks a late-cycle environment, where a large share of the market is sitting on paper profits.

When most holders are in profit, incentives to sell increase, and markets tend to react with cooling price action. That dynamic puts added pressure on Bitcoin’s short-term outlook, as more traders rotate into defensive positioning.

If selling accelerates, Bitcoin could retest the $100,000 psychological level, a zone with high liquidity and prior support.

Bitcoin’s Technical Rejection Nears Key Resistance

From a charting perspective, Bitcoin’s current price zone is loaded with supply pressure. The $106,000–$108,000 area marks a key resistance region — one that previously triggered a steep 27% correction in January, when BTC reversed from $109,000 down to $78,000 in just days.

This time, bulls have failed to push decisively above that range. Without a strong daily close above $106,000, the path of least resistance leans lower. Data from CoinGlass also shows a growing wall of sell orders building above $106,000, further reinforcing the idea that short-term upside may be capped.

The longer Bitcoin trades under this resistance without breaking through, the more likely it becomes that sellers take control — triggering a round of liquidations on long positions and dragging prices back toward the $100K mark.

Bitcoin Enters a Classic Profit-Taking Cycle, Not a Panic — For Now

None of the current signals point to a full-scale market breakdown. But for Bitcoin, the setup is becoming increasingly familiar: momentum is fading, a high percentage of supply is in profit, sellers are stepping in near resistance, and price action is stalling. These are the ingredients of a classic profit-taking cycle, not a fear-driven sell-off — at least not yet.

While Bitcoin’s broader uptrend may still hold, without a clear breakout above resistance, the rally risks shifting into retracement mode. A move back toward the $100,000 level wouldn’t be a surprise — it would be consistent with how this market historically reacts when too much optimism meets too little follow-through.

At the time of writing, Bitcoin is sitting at $106,677.03.