Bitcoin (BTC) maintained its position above $105,000 on Tuesday, recovering steadily after a weekend and Monday sell-off that triggered nearly $1 billion in liquidations and unsettled traders.

Ether (ETH) spearheaded gains among major cryptocurrencies with a 4.5% increase. This surge coincided with the Ethereum Foundation's strategic restructuring of its staff to prioritize protocol development within an increasingly competitive blockchain landscape, boosting bullish sentiment for the second-largest cryptocurrency.

Dogecoin (DOGE) followed with a 3% rise, while Solana (SOL), Cardano (ADA), XRP, and BNB Chain's BNB each added up to 2.5%. The broad-based CoinDesk 20 (CD20), a liquid index tracking the largest tokens by market capitalization, increased by 2%.

Following weeks of upward momentum, Bitcoin's recent price action has prompted traders to closely monitor for indications of a potential cooling-off period. Some are exercising caution as technical signals suggest the rally may be losing steam.

"Bitcoin hovering around the $105,000 range represents a circumstantial natural cooling after a strong rally. Elevated trading volumes followed by sustained interest now hint at fatigue," noted Ryan Lee, Chief Analyst at Bitget Research, in a Tuesday update shared with CoinDesk.

"BTC could consolidate between $103,000 and $108,000, with $100,000 acting as psychological support. If that level fails, downside targets near $97,000–$93,000 may be tested," Lee elaborated.

Lee further pointed out that on-chain data indicates continued accumulation by large holders (whales), typically a bullish signal suggesting that any correction could present a favorable entry point.

Regarding ETH, Lee observed that repeated rejections and long upper wicks around the $2,800 level suggest hesitation. "Overall strength remains intact, but momentum is capped unless ETH decisively breaks above $2,810," he stated.

The broader outlook for BTC remains robust from a macro perspective.

"On a year-to-date basis, BTC remains a strong outperformer on a macro basis and versus equity. However, there are short-term signs that we might be up for more challenging times ahead, with OGs and natives continuing to be better sellers and profit takers against mainstream buying," said Augustine Fan, Head of Insights at SignalPlus, in a Tuesday message to CoinDesk.

Geopolitical risks continue to influence market sentiment. Recent tariff announcements and a tense trade environment between the U.S. and China have traders preparing for increased volatility, with key policy deadlines looming in early July, according to Singapore-based QCP Capital in a market broadcast late Monday.

For the time being, Bitcoin is demonstrating its resilience and maintaining its position "at the top of the pecking order," the firm concluded.