Larger tokens such as Dogecoin (DOGE), Cardano (ADA) and Solana (sun) slipped more than 5% over the last 24 hours when dealers moved to lock some profits after a strong week -long rally.

The wider crypto market increased with risk assets last week, driven by macroeconomic tail winds and renewed investor optimism, but signs that some overheated segments may be due to a break.

“Bitcoin has hovered around the $ 104,000 level of the sixth day and experienced increased rotation,” FXPROS Alex Kibesikevich told Coindesk in an E email. “This is quite expected behavior as we approach the highest heights in December and January that acted as turning points.”

“Ether trades about $ 2615, after failing to consolidate over the $ 2700 mark, which the 200-day sliding average also passes. It is likely that after collecting 55% over the past seven days, the second largest capitalized cryptocurrency is likely to set a break or start a correction with a potential target to $ 2400,” Wrowsikevich Warned.

Sentiment indicators also reflect growing enthusiasm, with the Crypto Fear & Greed Index affected 73, approaching levels typically associated with overheated conditions, as mentioned Tuesday.

Earlier this week, the risk appetite increased after a combination of positive US inflation data, strong earnings from China’s technology sector and a breakthrough – China trade agreement increased global stock markets. Crypto followed, with Bitcoin card topped $ 104,000 and ether climbing to $ 2,700 – before both ran into resistance.

“China’s earnings in the tech sector rose in the wake of the US trade agreement with US-China, which led investors to hope for increased investments and innovations like AI last year,” Haiyang Ru, Co-Ceo for Hashkey Exchange Business Group, said in a telegram message.

“In addition, a monthly report revealed that US inflation was lower than expected, adding more fuel to a continued bull driving in the markets,” Ru said.

Still, institutional activity remains robust. Santimental data from earlier this week showed medium-sized Bitcoin holders or wallets with 10 to 10,000 BTC, had collected over 83,000 BTC in the last month.

Meanwhile, Coinbas’s upcoming recording in the S&P 500 on May 19 is considered a short -term catalyst for the sector, with some analysts estimating the passive fund’s demand for the stock could be $ 9 billion.

“We believe there is additional room for digital assets to gather, especially when Coinbase’s recording in the S&P 500 on May 19 is coming closer,” Singapore-based QCP Capital said in a telegram that was released late Wednesday.

“History tells us that index intervention tends to act as a short -term catalyst, as passive conductors adjust their allocations to track the benchmark more closely,” the fund noted.