Bitcoin, Dogecoin, and Major Cryptocurrencies Experience Profit-Taking Following Weeklong Surge

Major cryptocurrencies like Dogecoin (DOGE), Cardano (ADA), and Solana (SOL) experienced declines of over 5% in the last 24 hours as traders opted to secure profits following a significant rally over the past week.

The overall cryptocurrency market saw impressive gains alongside other risk assets last week, driven by favorable macroeconomic conditions and renewed investor confidence. However, indicators suggest that some overextended areas might now need to take a breather.

“Bitcoin has been maintaining its position around the $104,000 mark for the last six days, with notable fluctuations,” stated a spokesperson from FxPro. “This pattern seems predictable as we near the all-time highs set back in December and January, which acted as pivotal moments.”

“Currently, Ether is trading close to $2,615, struggling to stay above the $2,700 threshold, which aligns with the 200-day moving average. Considering its significant 55% rise in the past week, it is likely that the second-largest cryptocurrency will either halt its upward momentum or undergo a correction, possibly targeting around $2,400,” the spokesperson cautioned.

Sentiment metrics indicate a wave of enthusiasm, as the Crypto Fear & Greed Index reached 73, nearing ranges that are often viewed as overly bullish, as reported earlier in the week.

Earlier this week, a surge in risk appetite followed positive U.S. inflation reports, robust earnings from China’s tech sector, and favorable trade relations announcements between the U.S. and China, which propelled global equity markets. During this time, Bitcoin briefly reached over $104,000 and Ether climbed to approximately $2,700 before encountering resistance.

“Following the announcement of the U.S.-China trade deal, earnings from China’s tech sector soared, which sparked investor interest in potential investment and innovations like AI from the previous year,” remarked a co-CEO of a prominent exchange.

“Additionally, a recent monthly report showed that U.S. inflation was less than anticipated, further energizing a possible bull market,” they added.

Despite the fluctuations, institutional engagement remains strong. Data from Santiment revealed that medium-sized Bitcoin holders—those with balances between 10 to 10,000 BTC—have accumulated over 83,000 BTC within the past month.

In other developments, Coinbase’s poised entry into the S&P 500 on May 19 is being regarded as a potential short-term catalyst for the market, with analysts predicting that demand from passive funds could exceed $9 billion for the stock.

“There seems to be additional potential for digital assets to gain traction, particularly as Coinbase’s inclusion into the S&P 500 nears,” a Singapore-based investment firm disclosed.

“Historical patterns indicate that being added to an index often serves as a short-term booster, as passive managers revise their portfolios to align with the new benchmark,” the firm noted.