Bitcoin is currently approaching a significant support level in its trading range, which raises the possibility of a relief rally in the near term. While Bitcoin (BTC) managed to reclaim the $110,000 mark, analysts caution that the sustainability of this bounce remains uncertain. Glassnode analysts noted that long-term holders have realized significant gains, totaling 3.4 million BTC, while inflows into exchange funds have slowed after the Federal Reserve’s recent rate cut, suggesting potential fatigue in the market and an increase in downside risks.
Recent data from Farside Investors highlights a trend of net outflows from U.S. spot Bitcoin ETFs, amounting to $479 million this week. This decline indicates a waning demand from institutional investors. As a result, the Crypto Fear & Greed Index has shifted into the “fear” category, reflecting a bearish sentiment prevalent throughout the market.
Moreover, Bitcoin’s struggle has had a ripple effect on several major altcoins, which are also grappling with selling pressure. A mixed outlook prevails as traders appear to be rapidly offloading positions, despite hopes that Bitcoin can maintain its support within the $107,000 to $124,474 range. Experts are now examining whether Bitcoin can rebound off the $107,000 threshold, which could help uplift altcoins.
In terms of price predictions, Bitcoin recently faced resistance at the 20-day exponential moving average ($113,217), underscoring the negative sentiment in the market. Should sellers manage to break Bitcoin below the $107,000 support, a double-top pattern may materialize, potentially accelerating selling pressure and pushing the price down to $100,000. Conversely, if Bitcoin can break above the moving averages, it may continue to oscillate within its current range for a few more days.
Ether (ETH) has similarly been under pressure, slipping below the key support level of $4,060. A bearish crossover in the moving averages coupled with a declining relative strength index (RSI) indicates a continued downward trajectory. If ETH fails to hold the $3,745 support, it could decline to its pattern target of $3,426, with further downside towards $3,350 also a possibility.
XRP (XRP) is facing its own challenges, having dropped from the 50-day simple moving average ($2.98) to a solid support zone at $2.69. The sustained test of this support could weaken it, threatening to complete a bearish descending triangle pattern that may target levels around $2.20. Any potential relief rallies are expected to meet selling pressure at moving averages and the downtrend line.
In the case of BNB (BNB), which initially recovered off the 20-day EMA ($955) earlier in the week, sellers stepped in, pushing the price below this level. Continued support is monitored at the Fibonacci retracement level of $934, but a breakdown could further drag BNB to the 50-day SMA ($889).
Attempts for a recovery in Solana (SOL) have been stifled by ongoing bearish sentiment, as pressing sales have dragged the price below key support zones. If SOL fails to regain strength and continues to fall from the 20-day EMA ($219), it risks a dip to $175.
Similarly, Dogecoin (DOGE) is facing struggles with key resistance above $0.24. A downturn could find support at $0.21, but a breach could lead to further declines toward $0.18. Meanwhile, Cardano (ADA) has slipped under the $0.78 support, with active buying efforts to reclaim this level likely to be met with selling pressure.
Other altcoins, including Hyperliquid (HYPE) and Chainlink (LINK), are also navigating turbulent waters with predictions of severe sell-offs should current supports fail to hold. Avalanche (AVAX) has experienced a notable drop below the 20-day EMA ($30.09) but could find buyer interest around the 50-day SMA ($26.62).
As these trends unfold, investors are urged to conduct thorough research before making trading decisions in this unpredictable cryptocurrency landscape.
