Home Technical Analysis Bitcoin Hovers Near $120K as Market Eyes Breakout and Altcoins Gain Momentum
Technical Analysis

Bitcoin Hovers Near $120K as Market Eyes Breakout and Altcoins Gain Momentum

Share
Bitcoin Hovers Near $120K as Market Eyes Breakout and Altcoins Gain Momentum
Share

Bitcoin finds itself in a tight trading range between $115,000 and $120,000, displaying strong bullish momentum that suggests an imminent breakout could be on the horizon. The upward-sloping 20-day simple moving average combined with positive RSI readings indicates the digital asset may surge past its previous all-time high of $123,218 and potentially reach $135,000 if buying pressure continues.

Federal Reserve Influence on Crypto Markets

Federal Open Market Committee minutes and interest rate decisions remain crucial catalysts for crypto market sentiment. Traders and investors keep a close eye on these policy announcements since they directly affect market liquidity and risk appetite, often sparking significant volatility across Bitcoin and alternative cryptocurrencies.

Recent institutional activity reinforces the bullish narrative, with a strategy firm adding 21,021 BTC to their portfolio at an average price of $117,256. This substantial purchase brings their total Bitcoin holdings to 628,791 BTC, demonstrating unwavering institutional confidence despite seasonal market fluctuations.

Altcoin Momentum Builds Steam

While Bitcoin consolidates, alternative cryptocurrencies like Ether and Binance Coin have shown remarkable strength. Data from Glassnode reveals that Ether’s perpetual futures volume dominance has overtaken Bitcoin’s for the first time, representing the largest volume skew on record and signaling a notable shift in speculative interest toward altcoins.

Ether maintains support above $3,745 with bulls targeting resistance at $4,094 and a potential rally to $4,868. Meanwhile, BNB tests crucial support at $794, where a successful defense could lead to retesting the all-time high of $861 and potentially pushing toward $900.

Other major altcoins present mixed technical signals. XRP faces resistance near the 20-day simple moving average at $3.16, with critical support at $2.95 needed to prevent deeper corrections. Solana has pulled back to its 20-day SMA at $178, which now acts as a key support level, while Dogecoin slipped below its 20-day SMA of $0.22 with support emerging at $0.21.

Critical Price Levels to Watch

Bitcoin’s path forward hinges on two key scenarios. A decisive break above $120,000 could trigger substantial upward momentum toward $135,000, while a drop below $115,000 may result in a decline to $110,530 with further downside risk to $100,000 if support levels fail to hold.

For traders monitoring altcoin movements, Cardano has slipped below its 20-day SMA at $0.79 with support at $0.76, while Stellar plunged below its 20-day SMA of $0.44 as bears defend that level. Hyperliquid remains trapped between ascending channel support and its 20-day SMA at $45.13, and Sui recovered above $4.30 but faces potential bull trap conditions.

The current market structure suggests that both Bitcoin and altcoins are positioned at critical junctures. Moving averages, RSI indicators, and Fibonacci retracement levels provide essential guidance for near-term price action as institutional buying trends continue to signal sustained market confidence.

Market Implications

The combination of Bitcoin’s consolidation near resistance and growing altcoin strength suggests the crypto market may be preparing for a significant directional move. Institutional accumulation alongside shifting futures volume dynamics could fuel broader market participation and potentially drive prices higher across multiple digital assets.

Share
Written by
Logan Pierce

Logan Pierce is a U.S.-based crypto researcher and Web3 strategist with deep expertise in AI tools for crypto, Layer 2 scaling, DeFi, and on-chain analytics. With a background in software development and macro trend analysis, he breaks down complex blockchain topics into actionable insights. Logan regularly covers tokenomics, security, airdrops, and emerging technologies like zk tech, helping both beginners and advanced users navigate the evolving crypto landscape.

Leave a comment

Leave a Reply

Related Articles

Solana Struggles Around $160 as Analysts Weigh August Trends and Long-Term Prospects

Solana has encountered fresh selling pressure lately, with the token now hovering...

ENS Tests Key Support as Technical Indicators Hint at Potential Price Reversal

Ethereum Name Service has been trading at $25.00, marking a 0.91% decline...

BlockDAG Debuts Live Trading Simulation as TON Nears $5 and Dogecoin Eyes $0.50

Market momentum frequently builds beneath the surface before making headlines, and that’s...

Bitcoin Holds Steady at $112K as Bulls Eye Breakout Toward $120K

Bitcoin traders are watching closely as the cryptocurrency finds stability around the...