Bitcoin Retests $101K as Market Consolidation Holds

Bitcoin once again tested the $101,000 support level over the past 24 hours, holding within its established trading range and signaling continued consolidation following its sharp monthly rally.

Bitcoin liquidations remain subdued compared to those seen across altcoin positions. According to data from CoinGlass, daily liquidations totaled $340 million, with BTC accounting for just $56 million. Ethereum (ETH) led the tally with $101 million in liquidations, underscoring the rising risk appetite among futures traders.

However, market sentiment indicators suggest that enthusiasm for altcoins remains muted:

• Fear & Greed Index dropped to 69 (greed)
• Bitcoin dominance holds firm at 62%
• Altcoin Season Index slipped to 26, nearing full BTC season territory

The broader crypto market also showed little response to the recent cyberattack on Coinbase, which led to a user data breach. The lack of panic selling suggests that investors have developed a degree of immunity to such incidents. However, traditional markets did respond.  Coinbase stock, which was recently added to the S&P 500, fell 7.2% following the news, according to Google Finance.

Bitcoin Awaits a Breakout

Following a period of low volatility within a narrow $1,000 band, Bitcoin has shifted into a broader consolidation range between $101,000 and $105,000. After testing the lower bound earlier this week, BTC is now making a steady move toward near-term resistance. On the 4-hour chart, a potential double bottom (a classic reversal pattern) has formed. Confirmation would require a breakout in either direction.

Analysts at asset management firm Swissblock highlight that Bitcoin has now tested key support around the $105,000 level twice, suggesting that the next major move could come as early as today (Friday, May 16) or at the start of the new trading week. The move could be sharp and potentially unexpected.

Meanwhile, Material Indicators sees a low probability of Bitcoin setting a new all-time high in the immediate term. Order book data points to a possible pullback toward the $100,000 mark. While analysts acknowledge the strength of the macro uptrend, they advise traders to brace for a potential correction.

Bitcoin ETFs and the Gold Analogy

Investor appetite for U.S. spot Bitcoin ETFs remains strong, despite ongoing volatility in the digital gold. On May 15, 2025, net inflows reached $114.9 million. Once again, BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the pack, posting $409.7 million in net inflows—more than offsetting outflows from competing funds.

As noted by blockchain engineer apsk32, the recent surge in gold prices (now nearing $3,500) has significantly strengthened Bitcoin’s position relative to precious metals. He argues that the ongoing four-year BTC cycle could still culminate in new all-time highs, potentially reaching $250,000 before the end of the year. His projections are based on BTC's value measured in troy ounces of gold, aiming to filter out the impact of fiat currency inflation.

Analysts at In Gold We Trust have also shared their perspective, suggesting that if Bitcoin were to reach 50% of gold’s market capitalization (based on gold trading at around $4,000), its price could rise to $739,422. However, the authors stress that this is a theoretical model rooted in Bitcoin-to-gold correlation, not a direct price prediction.