Bitcoin Risks $100K-Retest Following Wall Street Pullback Warning

Bitcoin (BTC) fell 2.25% on Tuesday to around $104,200, mirroring a broader risk-off sentiment sweeping through global markets after Wall Street leaders warned that US equities may be due for a healthy correction.

Wall Street Caution Hits Risk Assets

The drop in Bitcoin coincided with a sell-off in US stock futures following Palantir Technologies Inc.’s earnings, which reignited concerns about overvalued tech stocks.

Several Wall Street chief executives, including Mike Gitlin of Capital Group, Ted Pick of Morgan Stanley, and David Solomon of Goldman Sachs, cautioned that investors should prepare for an equity market drawdown of more than 10% over the next 12 to 24 months.

Gitlin noted that while corporate earnings remain strong, valuations appear stretched.

“Most people would say we’re somewhere between fair and full, but I don’t think a lot of people would say we’re between cheap and fair,” he said during a financial summit hosted by the Hong Kong Monetary Authority.

The same issue, he added, applies to credit spreads, suggesting limited upside for risk assets in the short term.

Their collective tone underscored the likelihood of a near-term correction, one they described as a “normal feature” of market cycles. But with both equities and Bitcoin trading near historically elevated levels, risk sentiment weakened broadly this week.

Long-Term Bitcoin Holders Exit

On-chain data from CryptoQuant shows that long-term Bitcoin holders have sold over 400,000 BTC in the past 30 days, roughly 2% of total circulating supply, marking one of the most significant distribution phases of 2025.

Historically, such outflows from “diamond hands” tend to precede consolidation periods or moderate corrections, especially when macro risk aversion rises.

Despite the selling pressure, BTC remains resilient above the critical $100,000 psychological mark, suggesting that new buyers, possibly ETFs or institutional desks, continue to absorb the supply.

BTC Technical Outlook: $101K Test Likely

Technically, Bitcoin’s weekly chart shows the price testing the 20-week exponential moving average (EMA) near $105,000, with the next key support at the 50-week EMA around $101,000.

A breakdown below this level could expose the market to a deeper retracement toward the $96,000–$98,000 range, where historical demand clusters.

The weekly RSI has cooled to near 46, signaling weakening momentum but not yet oversold conditions.