Will Bitcoin’s $100,000 milestone trigger another sell-off? Explore past trends, current market signals and Altcoin impact in this BTC price forecast article. Stay ready for key trading insights.
$100,000 as a psychological barrier
Historically, Bitcoin (BTC) has encountered significant resistance at major psychological price levels, with $100,000 being a significant milestone. In the second half of 2024, when BTC briefly hit $100,000, it triggered a sharp sell-off.
This phenomenon is often driven by profits from short-term traders and institutional participants, with BTC retreating 10-15% within a few days. The $100,000 level is seen as an euphoric peak, prompting holders to lock in gains, thereby improving volatility and temporary corrections.
This behavior coincides with previous milestones, such as $100K in 2017 and $50,000 in 2021, and as market sentiment shifts, quick waste is followed by a pullback.
Source: Coingecko
What happens when BTC reaches $100K again?
In 2024, trading volumes soared and leverage in derivatives markets soared, indicating speculative enthusiasm. Every time BTC approaches this level, on-chain data will show a whale wallet transferred to exchange, a signal of potential sales pressure.
As @fasteptical mentioned, the price is $100,000:
100k will be a wall that can be passed through CC @chainstatspro Market depth, order manual snapshot. $ btc pic.twitter.com/xdtyj2j5ho
– Liquidity Price (@FastTime) May 8, 2025
However, not every method leads to a dump. For example, in the third quarter of 2024, BTC consolidated about $95,000 in a few weeks without major corrections and was backed by strong institutional purchases and ETF inflows.
The key difference seems to be market conditions: overheating sentiment (high capital rates, excessive leverage) is usually before the sell-off, while steady accumulation reduces the dump.
As of May 2025, BTC hovered around $98,000, with low leverage and balanced sentiment suggesting a possible breakout of more than $100,000, although vigilance for a sudden change remains crucial.
AltCoin follows Bitcoin
AltCoins usually follow the price action of Bitcoin and expand its action. When BTC soared to $100,000 in 2024, major altcoins like Ethereum (ETH) and Solana (Sol) (Sol) (Sol) (Sol) only face sharper corrections during the callback process of BTC.
Source: Coingecko
This correlation stems from market psychology: BTC’s dominance drives capital flows, and BTC’s sell-offs often cause panic in the Altcoin market. Smaller CAP goats with lower liquidity hit the worst, sometimes dropping 40-50% in a few hours.
Trading with caution
For traders, this dynamic emphasizes the need for caution. The main considerations include:
- BTC Advantage: The rise in the BTC Advantage Index usually signals that altcoin performs poorly, especially during corrections.
- Liquidity Management: Avoid over-maining altcoin position as a peak of volatility during BTC dumps.
- Selective Opportunities: Altcoins with strong fundamentals (e.g., layer protocols with high developer activity, DEX, DEFI) may recover faster post corrections.
- Reduce risk: Set stop loss and diversified exposure to reduce downside risk during BTC-dominated volatility.
Traders and investors should adopt clear strategies to achieve this $100,000 milestone. First, track on-chain metrics such as exchange inflows and whale activity to measure sales pressure. Second, monitor signs of overheating of derivatives markets (e.g., high funding rates or open interest rates). Third, prioritize capital preservation by reducing leverage and ensuring Altcoins’ profits in BTC’s $100,000 approach.
While $100,000 can mark a historic breakthrough, preparing for fluctuations is key to navigating this critical moment.
