Bitcoin Holds Strong as Altcoins Surge, Hinting at “Altseason”
Market Watchdogs Eye Bitcoin’s $120,000 Resistance Amidst Buyer Confidence
Bitcoin (BTC) is navigating sales pressures around the $120,000 mark, yet buyers have successfully defended the $115,000 floor in recent sessions. This resilience suggests that despite selling activity, demand remains robust, potentially fueling further upward momentum. Concurrently, a notable uplift in several key altcoins is signaling the potential onset of an “altseason,” a period where alternative cryptocurrencies outperform Bitcoin.
Investor Sentiment Remains Bullish Despite Minor Bitcoin Outflows
While Bitcoin saw net outflows of approximately $131.35 million on Monday, this follows an impressive 12-day streak of inflows totaling around $6.6 billion. Data from Sosovalue indicates that investors are not rushing to cash out, anticipating continued price appreciation. This sustained buying interest, even with short-term outflows, underscores a confident market outlook.
Ether Investment Products See Record-Breaking Inflows
The enthusiasm isn’t confined to Bitcoin. Ether (ETH) exchange-traded products experienced a remarkable surge, attracting $2.12 billion in inflows on Monday, nearly doubling their previous record. This significant investment indicates strong institutional and retail interest in Ethereum’s future prospects. According to a CoinShares report, crypto funds saw total inflows of $4.4 billion this past week.
Market Analysis: S&P 500, Dollar Index, and Major Cryptocurrencies
S&P 500 Shows Resilience, Dollar Index Faces Headwinds
The S&P 500 index (SPX) has demonstrated strength, rebounding from its 20-day exponential moving average (EMA). With upward-sloping moving averages and a relative strength index (RSI) nearing overbought territory, bulls appear to be in control. The index faces potential resistance near 6,500, while a break below 6,147 could signal a weakening bullish trend.
Meanwhile, the US Dollar Index (DXY) has stalled at its 50-day simple moving average (SMA), indicating selling pressure on rallies. A decline below the 20-day EMA ($97.94) could pave the way for further depreciation towards 97.17 and a critical support level at 96.37.
Bitcoin Targets $135,729 Amidst Consolidation
Bitcoin’s price action around $120,000 highlights a tug-of-war between buyers and sellers. The ascending 20-day EMA at $115,289 and a positive RSI suggest that the path of least resistance remains upward. A sustained push above $123,218 could propel BTC/USDT towards $135,729 and potentially a pattern target of $150,000. However, sellers aiming to push the price below $110,530 could trigger a sharper decline towards $100,000.
Ether Eyes $4,094 Despite Resistance at $3,745
Ether (ETH) briefly surpassed the $3,745 resistance level but failed to sustain the momentum. Sellers are active at higher levels, potentially leading to a pullback towards the 38.2% Fibonacci retracement at $3,494. A bounce from this zone could re-ignite efforts to reach $4,094. Failure to hold $3,381 could see ETH/USDT decline to the 20-day EMA at $3,191.
XRP Breaks Key Resistance, Eyes $4.86
XRP has successfully broken above the $3.40 resistance, with buyers attempting to convert this level into support. A move past $3.66 could propel XRP/USDT towards $4 and subsequently a target of $4.86. While the trend is bullish, an overbought RSI suggests a potential for short-term corrections. A drop below $3.40 could signal a bullish trap, with support found at the 20-day EMA around $2.96.
BNB Faces Crucial Test at $761-$794 Zone
BNB is engaged in a critical battle near the $761 level. A close below this point could lead to a test of $732. A strong rebound from $732 would reaffirm demand, allowing bulls to re-challenge the $761-$794 resistance zone. A successful breakout could open the path towards $900. Conversely, a break below $732 might see BNB/USDT fall to the 20-day EMA at $707.
Solana Breaks Out, Potential for $240 Target
Solana (SOL) has surged above the $185 resistance, with bulls now aiming to conquer the $209 mark. However, an extremely overbought RSI signals a possibility of a near-term pullback or consolidation. Support at $185 would be crucial for bulls to maintain upward pressure, potentially leading to a break above $209 and a move towards $220 and $240. A break below $185 could indicate profit-taking, with the 20-day EMA at $170 serving as the next support level.
Dogecoin Consolidates After Upward Breakout
Dogecoin (DOGE) has resolved its consolidation range with a breakout above $0.26. Sellers are attempting to pull the price back below this level, which could trap optimistic buyers. A failure to hold $0.26 might lead DOGE/USDT to the 20-day EMA at $0.21, a level that could attract renewed buying interest. A bounce from $0.26 would confirm it as support, with minor resistance at $0.29 potentially giving way to a move towards $0.35.
Cardano Faces Resistance at $0.86, $1.17 Potential Target
Cardano (ADA) surpassed $0.86, but faced selling pressure at higher levels. Sellers are attempting to push the price back below $0.86. A failure to hold this level could result in a decline towards the 20-day EMA at $0.74, a critical support zone. A break below the 20-day EMA might extend the correction to the 50-day SMA at $0.65. Conversely, a bounce from the 20-day EMA could see ADA/USDT attempt to break through $0.94, targeting $1.02 and potentially $1.17.
Hyperliquid Shows Mixed Signals Near $48 Resistance
Hyperliquid (Hype) bounced off its 20-day EMA around $43.77 but failed to sustain higher prices, suggesting profit-taking on rallies. Sellers are trying to push the price below the 20-day EMA, which could lead Hype/USDT towards the ascending channel’s support line. A move above $48 would indicate strong buying interest, increasing the likelihood of a rally towards the upward channel’s resistance around $58.
