Bitcoin is currently experiencing a pullback, hovering closer to the $110,000 support level, prompting speculation about potential market reactions and the fate of altcoins like ETH, BNB, LINK, and MNT. After reaching a high of $124,128 recently, Bitcoin has seen a roughly 7% decrease, leading some analysts to suggest a possible retest of the $110,000 level as buyers look for more favorable entry points. This dip reflects profit-taking and reduced buying interest, impacting the broader cryptocurrency market.
Technical analysis indicates that Bitcoin is trading below key support levels, with $111,877 identified as immediate support on the daily chart. A failure to hold above this level could trigger further declines, potentially reaching $100,000 or even lower, towards $92,000 - $95,000. Conversely, a recovery above $120,000 could signal a bullish reversal, potentially lifting Bitcoin back towards $124,000 - $127,000, with a breakout potential toward $135,000. Currently, Bitcoin is trading below $117,000, with immediate resistance near $117,000 - $118,000.
On-chain data reveals that the $116,963 price point represents Bitcoin's largest cost-basis cluster, holding over 700,000 BTC, or 3.61% of the total supply. This substantial concentration could act as both a resistance level and a trigger point for a deeper pullback. The $114,000 level might attract some buyers, but there's an increased risk of a margin squeeze, making $110,000 a likely target for a liquidity grab before fresh buying emerges.
Bitcoin's Accumulation Trend Score has also declined, signaling reduced buying interest from HODLers. Some analysts anticipate Bitcoin to remain range-bound until stronger macro catalysts appear, as investors adopt a wait-and-see approach. While some analysts foresee a drop towards $100,000, others maintain a bullish outlook, with projections reaching $145,000.
The uncertainty surrounding Bitcoin's near-term performance has affected altcoins, including Ethereum. Spot ETH exchange-traded funds have experienced outflows, reflecting a cautious sentiment. However, some traders remain optimistic about Ethereum's potential, with predictions of surges above $8,000.
A potential Bitcoin rebound from the $110,000 support level could positively influence altcoins such as ETH, BNB, LINK, and MNT. These altcoins have shown strength in recent times, and a resurgent Bitcoin could provide further upward momentum. It's important to monitor Bitcoin's price action closely, as its movements significantly impact the broader cryptocurrency market. Keep an eye on the $111,877 support level; a failure to hold could lead to further declines, while a recovery above $120,000 may signal a bullish reversal.
