Technical signals suggest resistance ahead while altcoins gain momentum
Bitcoin (BTC) is holding steady near $118,000, consolidating after a sharp rally that lifted the world’s largest cryptocurrency to its highest level since April. Traders, however, caution that the market may face a deeper correction in the short term, even as altcoins begin to attract fresh capital.
On the daily chart, BTC is trading just below a resistance zone between $122,000 and $124,000, highlighted by repeated rejections at the upper band. Price action shows that Bitcoin recently broke out of a descending channel but is now testing the green support block near $114,000–$115,000. A sustained move below this level could open the door to a retest of the $104,000 zone, with further downside risks toward $92,000 support.
“This looks like a textbook breakout followed by a possible retest of support,”According to BITX analyst , pointing out that Bitcoin has a history of sharp pullbacks following extended rallies.
Market commentators such as Lark Davis and Michaël van de Poppe have highlighted the growing possibility of an altcoin rotation, with capital flowing from Bitcoin into Ethereum and mid-cap tokens. Ether (ETH) has outperformed in recent weeks, buoyed by strong staking demand and renewed institutional interest.
Van de Poppe remarked, “If Bitcoin consolidates or corrects from here, we could see altcoins accelerating with double-digit gains, especially if dominance continues to fall.”
While long-term sentiment remains bullish, short-term technicals point to choppy trading conditions. Traders are watching whether Bitcoin can reclaim the $122K–$124K resistance to resume its uptrend, or if a deeper retracement toward $104K unfolds before the next leg higher.
For now, the market’s focus remains split: Bitcoin is consolidating near record highs, while altcoins are beginning to capture traders’ attention as capital rotates across the crypto ecosystem.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.