Crypto Pullback in Focus: Bitcoin Retreats to Support as Altcoins Show Mixed Signals

The crypto market experienced a notable correction on Thursday, with Bitcoin retreating from its weekly peak and major altcoins facing sustained selling pressure. The pullback, driven by profit-taking and significant liquidations, highlighted the volatile nature of the current market cycle.

Market Overview: What the Numbers Tell Us

Bitcoin initially surged to $94,000 earlier in the week but encountered resistance, falling to $89,700 before stabilizing around $90,300. According to the latest market data as of January 15, Bitcoin now trades at $96.65K with a 24-hour gain of 1.77% and a 7-day advance of 7.16%—suggesting a recovery from Thursday’s dip.

Ethereum faced similar pressures, dipping to $3,120 during the pullback. Current data shows ETH trading at $3.35K with 24-hour gains of 1.79% and weekly gains of 7.48%. XRP, BNB, Solana, Dogecoin, and Cardano all experienced declines during the correction window, with losses reaching as high as 7% for some positions. Recent readings show XRP at -0.18% over 24 hours but up 1.20% weekly, suggesting stabilization.

The Liquidation Event and Profit-Taking Mechanics

When Bitcoin attempted to break above $94,000, a significant wave of long liquidations totaled approximately $150 million over a four-hour period, according to on-chain analysis. This triggered a cascade effect across leveraged positions, compressing prices across major assets.

Market analysts attributed the move to classic profit-taking behavior—traders who accumulated gains from the week’s rally (Bitcoin up 3.2%, Ethereum up 5.1% week-to-date) locked in positions as resistance emerged. XRP, BNB, and Solana had posted gains of up to 20% in the seven days leading up to Wednesday, making these assets prime candidates for position reduction.

Technical Levels: Where Traders Are Focused

Support levels on Bitcoin’s daily chart currently sit at $87,496 and a broader band at $85,982–$86,291, derived from October rally retracements and December lows. A critical zone exists at $83,712–$84,000, marking the 2025 weekly low close and the 38.2% retracement of the 2022 advance.

Should sellers breach this area, the next bearish target sits at $78,342–$79,127—levels not visited since April 2025. This creates a multi-month downtrend scenario that traders are monitoring closely.

Another weakening metric is the SOPR Ratio, which tracks realized profitability between long-term and short-term holders. The ratio fell below 1 as Bitcoin dropped from $110,000–$120,000 highs in October to the current levels, indicating that short-term holders are crystallizing losses while long-term holders are trimming profits accumulated since November 2024.

Ethereum’s Institutional Challenge

Ethereum has been particularly vulnerable to institutional headwinds. A $98.45 million spot ETF outflow was recorded on Wednesday, signaling reduced institutional demand. Additionally, the Ethereum premium gap between major trading venues has turned negative, with the 14-day moving average reaching -2.285—the lowest since February of last year.

A negative premium indicates concentrated selling pressure on U.S.-based exchanges, creating a meaningful challenge as Ethereum attempts to reclaim the $3,300 resistance level. The asset remains burdened by its October peak near $4,700, from which it has failed to sustainably recover above $3,500 since mid-November.

The Role of XRP and the Broader Ecosystem

XRP, supported by its growing ecosystem including XRP wallet app developments that enhance user accessibility and security features, showed relative resilience with 7-day gains despite Thursday’s volatility. However, 24-hour data reflects modest weakness at -0.18%, suggesting cautious sentiment persists.

Macro Backdrop: Jobs Data and Tariff Uncertainty

The broader market retreat may also reflect fresh economic data. Private employers added 41,000 jobs in December—a modest improvement from November’s revised 29,000-job loss. While the rebound suggests labor market stability, the pace remains below historical norms.

Investors are now calibrating risk exposure based on dual factors: employment trends and anticipated Supreme Court decisions regarding global tariffs. This macro uncertainty is weighing on risk appetite, with crypto assets particularly sensitive to shifts in investor positioning.

The week remains constructive despite Thursday’s pullback, with the path forward contingent on whether buyers can stabilize prices around current support or whether technical capitulation triggers a deeper correction.