Bitcoin is encountering notable resistance at the $117,500 mark, yet bullish sentiment persists as long as its price manages to remain above $113,400. Recent fluctuations have seen several altcoins engaging in profit-booking scenarios. However, analysts anticipate that lower price levels may prompt renewed interest from buyers.
On Monday, Bitcoin’s inability to breach the $117,500 threshold led to profit-taking among short-term traders, driving the price down past the $115,000 level. Keith Alan, co-founder of Material Indicators, highlighted the absence of a price peak at $124,500, attributing the ongoing support to robust institutional demand.
Recent data shows that spot Bitcoin exchange-traded funds (ETFs) recorded inflows of $642.35 million last Friday, pushing the total weekly inflows to an impressive $2.34 billion. It wasn’t just Bitcoin ETFs that benefited; Ethereum (ETH) ETFs also collected $637.68 million during the same timeframe.
Conversely, not all investors are bullish on Bitcoin at the moment. Lookonchain reported that a long-term Bitcoin whale, who had previously swapped $4 billion worth of Bitcoin for ETH two weeks ago, transferred 1,176 BTC, valued at over $136 million, to the trading platform Hyperliquid. This move suggests a strategy shift as the whale begins to offload BTC.
As market participants speculate if Bitcoin can break through its overhead resistance, the broader cryptocurrency market remains a point of interest. An examination of the top ten cryptocurrencies elucidates potential trends and price movements.
In traditional markets, the S&P 500 Index (SPX) has shown strong upward momentum, indicating that bullish traders are in control. Buyers aim to extend the rally to the 6,700 level, where significant resistance is anticipated. If bulls maintain the price above the 20-day exponential moving average of 6,491, a climb toward the 7,000 marker could be forthcoming. However, if bears succeed in pulling the index below the 50-day simple moving average of 6,391, a drop towards 6,147 may follow.
The US Dollar Index (DXY) has faced repeated challenges from bears attempting to keep prices below key moving averages. If sellers can push the index below the support level of 97.10, the next anticipated slowdown could occur at 96.37. Buyers are likely to defend the 96.37 level vigorously, as failure to do so could invite further declines to the 95 mark.
In analyzing Bitcoin’s trajectory, the cryptocurrency currently holds above the 20-day EMA at $113,365. However, the upward push past the $117,500 resistance remains a struggle for bulls. Should bears manage to negotiate the price below the 20-day EMA, Bitcoin may continue fluctuating within the established range of $107,000 to $124,474. Conversely, a successful climb above the $117,500 resistance could herald a rally towards $124,474, with potential moves reaching as high as $141,948.
Ethereum’s position shows it has retreated from the heavy resistance zone of $4,788 to $4,956, as bearish activity becomes evident. Currently, the ETH/USDT pair sits at the critical 20-day EMA of $4,438, where a rebound could signal new bullish momentum, potentially targeting $5,500. Should prices fall below the 20-day EMA, bears would likely aim for support at $4,060.
XRP is also facing challenges, having dipped from $3.18 and is currently retesting a key breakout level. A positive reversal from this downtrend line could see XRP gaining strength and pushing towards $3.40. However, a drop below the line would suggest a bear trap, risking a plunge to $2.69.
Solana’s recent performance reveals retreat from highs around $250, indicating that bears are increasingly active at the $260 resistance. Should the price decline to the 20-day EMA at $217, buyer interest could pick up, potentially pushing Solana back towards its all-time high of $295. A consistent drop below the 20-day EMA, however, may ignite faster profit-taking, bringing prices closer to the 50-day SMA at $195.
Meanwhile, BNB has experienced a strong uptrend with both moving averages displaying upward momentum. The next target appears to be the $1,000 level, where formidable resistance is expected. A rebound from $884 would affirm the ongoing bullish trend, while a downward turn below the 50-day SMA could signal a notable shift in market sentiment.
Dogecoin recently breached the $0.29 resistance, but has struggled to maintain higher levels. The bears are currently attempting to drive the price towards the 20-day EMA at $0.24. A significant rebound at this level could reaffirm bullish support, pushing prices above $0.31, while sellers pushing lower would threaten momentum and may lead to a decline to $0.22.
Cardano is in a phase of indecision, forming a symmetrical triangle pattern. A successful breakout above the resistance could lead to a surge towards $1.02, while a drop below the support line could result in a decline to as low as $0.68.
Lastly, Hyperliquid has witnessed a minor pullback following a peak at $57.44, but signs suggest that buyers remain engaged. The 20-day EMA indicates ongoing demand, and a successful push past $57.44 could aim toward $64.25. Support levels are noted at $49.88 and $45.28, critical thresholds that traders will monitor closely.
As the cryptocurrency market develops, observers will closely follow these trends and resistance levels, weighing the balance of bullish versus bearish sentiment across various assets.
