Bitcoin Reaches New High; XRP, DOGE, and SOL See Short-Term Corrections

Bitcoin Holds Near $121.5K as Altcoins Pull Back

Bitcoin (BTC) paused around $121,500 on Monday after reaching a weekend high above $125,000, as profit-taking weighed on major altcoins. DOGE, ADA, XRP, and BNB all experienced minor declines, signaling a temporary market breather rather than a trend reversal.

BNB Shines Amid Market Rotation
BNB stood out, climbing over 17% in the past week to roughly $1,184. Analysts note this reflects capital rotation within crypto ecosystems, with investors reallocating from Bitcoin into high-demand altcoins.

Bull Market Momentum Continues
Despite minor pullbacks, the Bitcoin bull trend remains intact. Strong spot demand, record ETF inflows, and shrinking exchange balances—now at a six-year low of 2.83 million BTC—support ongoing upside potential. Last week alone, U.S.-listed ETFs added $3.2 billion in BTC holdings.

The Fear and Greed Index sits at 64, indicating elevated but not extreme optimism, suggesting room for further gains without excessive leverage.

Altcoin Pressure and Profit-Taking
Altcoins faced profit-taking pressure: DOGE and ADA led losses, XRP, BNB, and TRX fell up to 2%, while ETH dipped slightly over 0.5%. Analysts say these moves reflect normal rotational flows rather than a shift in the overall bullish narrative.

Stablecoin Liquidity Supports Market
Stablecoin supply, which expanded by roughly $45 billion last quarter—mostly on Ethereum—provides liquidity to absorb profit-taking. Combined with U.S. government shutdown uncertainty, these factors help sustain market momentum.

Key Level: $125,000
Experts identify $125,000 as a critical level. Institutional flows and ETF-driven accumulation suggest upside potential, while long-term sellers active since July could cap gains.

“The next move will test historical highs around $125K,” said Alex Kuptsikevich of FxPro. “A quick rejection could trigger profit-taking, but steady accumulation may propel BTC higher.”

Traders will monitor price action near this level to gauge whether fresh demand can sustain the rally or if supply pressure will dominate.