Bitcoin Poised for a Correction to $100K Before Surging Toward $140K Highs

Key Insights:

• Bitcoin trades near $106K with analysts expecting a short-term correction before a potential rally.
• Fear Index at 22 signals possible buying phase as investors prepare for next major recovery.
• Active wallets drop while total wallets hit 1.4B, showing rising long-term holding sentiment.

Bitcoin (BTC) continues to trade within a wide range as traders monitor market movements closely. Market analysts suggest that Bitcoin’s price may soon test lower support levels. Analysts suggest that the price could revisit the lower end of this channel, around the $100,000 level.

Bitcoin Market Shows Signs of a Possible Correction

Bitcoin is trading steadily above the $106,000 mark, showing a 1.56% increase in the last 24 hours. The 24-hour trading volume stood at $81.3 billion, reflecting strong activity as traders assess the next major move. Analysts are observing the price within a broadening wedge pattern that has persisted for more than three months.

The analyst added that the level may serve as a “psychological area” before the price attempts a move to new all-time highs. Technical analysts suggest that Bitcoin could retrace toward $100,000 before a possible rally toward $140,000 if demand strengthens. The broadening wedge pattern and current sentiment may support a temporary correction before upward momentum resumes.

Market Sentiment Shows Fear Buying Interest Remaining

However, Market sentiment toward Bitcoin remains cautious, with the Fear and Greed Index showing a fear level of 22, one of the lowest readings in months. According to analyst KellyKellam, “Last time it was this low, price went from $54K to $109K,” noting that the market could experience more “pain, chop, and shakeouts” before a bullish reversal forms.

With Fear levels at this low, it often marks accumulation periods for long-term investors, who view such phases as buying opportunities rather than exit signals. Many traders continue to monitor whether the current fear cycle will precede a larger market recovery similar to past trends. Traders are watching whether the $100K support area attracts renewed demand from investors. 

Bitcoin Network Data Reflects Growing Long-Term Holding

In addition, Blockchain data indicates a mixed picture between active and total addresses. The number of active Bitcoin wallets has declined from 1.1 million in 2021 to around 800,000 in 2025. However, total Bitcoin wallets have reached 1.4 billion, marking a new all-time high.

This trend suggests that more users are holding Bitcoin as a long-term store of value rather than actively trading it. While short-term traders prepare for potential volatility, many observers view the recent market structure as a setup for the next significant move in Bitcoin’s long-term trend.