Market liquidity and short-selling pressure remain key factors to watch, introducing some near-term uncertainty in price action.
Institutional buying continues to surge, driving Bitcoin’s net inflows to a multi-week high. Combined with the calming tensions between Iran and Israel and record-breaking performances in U.S. equities, Bitcoin is poised for a potential push toward a new all-time high. Last week’s gain of over 6% underscores strong buying interest near the $100,000 level. Bulls are working to solidify their position by holding the price above $108,000.
That said, traders should note that weekend trading often comes with lower liquidity, making breakouts less reliable. Sellers are likely to return at the start of the week and attempt to cap gains within the $100,000 to $111,980 range.
Bitcoin's strength has already spurred increased interest in several altcoins, many of which are rebounding from key support zones. If Bitcoin breaks to new highs, select altcoins may attempt to surpass their own overhead resistance levels and extend their upward momentum.
Bitcoin Price Analysis
Bitcoin has been trading between its moving averages and a descending trendline. Buyers have made several attempts to push the price above this trendline, but sellers have so far defended this level vigorously.
The moving averages are sloping upward gradually, and the Relative Strength Index (RSI) remains in positive territory, suggesting that bulls have a slight advantage. A decisive break above the trendline could see the BTC/USDT pair rally toward $110,530, with a further potential move up to $111,980.
This zone between the trendline and the neckline of an inverse head and shoulders pattern is expected to invite significant selling pressure. However, if buyers manage to force a breakthrough, the pair could begin a strong rally toward $150,492.
This optimistic near-term outlook would be invalidated if the price reverses from the trendline and breaks below the moving averages. Such a move could open the doors for a decline toward $102,500, and potentially even $100,000.
On the 4-hour chart, the pair rebounded from the 20-EMA but failed to overcome resistance at the descending trendline. If the price continues to drop and breaks below the 20-EMA, it would signal that bulls are losing grip. The pair could then decline to the 50-SMA, a key level to watch. A break below the 50-SMA may intensify selling pressure, pushing the price toward $100,000.
On the upside, buyers must propel and sustain the price above the descending trendline to signal strength.
HYPE Price Analysis
Hyperliquid (HYPE) dipped below the 20-day EMA ($37.14) on Thursday, but sellers could not sustain the lower levels—indicating accumulation on minor dips.
Buyers pushed the price back above the 20-day EMA on Saturday. Immediate resistance is near $39.12. A break above this level could see the HYPE/USDT pair rally toward $42.50. The zone between $42.50 and $45.80 is expected to pose a significant barrier.
Conversely, if the price turns down and breaks below the 20-day EMA, it would suggest that sellers are active at higher levels. The pair could then slide to the 50-day EMA ($34.42). A break and close below this support could lead to a fall toward $30.69.
On the 4-hour chart, the pair found support at the 50-SMA, and buyers are attempting to push the price above the nearby resistance at $39.12. If they succeed, the pair could rise to $41 and then to $42.50.
On the downside, the first support is the 20-EMA, followed by the 50-SMA. A break below the moving averages would signal weakening bullish momentum. The pair may then decline to $33.25 and later to the stronger support at $30.69.
BCH Price Analysis
Bitcoin Cash faced selling pressure near the $500 mark, but a positive sign is that bulls did not cede much ground to the bears.
The rising moving averages and the RSI in positive territory indicate that buyers are in command. This improves the chances of a break above $500. If that happens, the BCH/USDT pair could rally to $550. Sellers will likely mount a strong defense near $550, but if bulls prevail, the pair may reach $625.
On the downside, the first key support is the 20-day EMA ($464), followed by the 50-day EMA ($430). A break below the 50-day EMA would signal that sellers are back in control.
On the 4-hour chart, bulls are trying to sustain the price above the 20-EMA. If they manage to do so, the pair could retest the $500 resistance. A break above $511 could signal the resumption of the uptrend.
Alternatively, if the price breaks and sustains below the 20-EMA, it would suggest profit-booking by short-term traders. The pair could then drop to the 50-SMA, where buyers may step in again.
Chainlink Price Analysis
Chainlink has been defending the 20-day EMA ($13.27) over the past few days, indicating that buyers are not exiting their positions hastily.
If the price rises and sustains above the 20-day EMA, the LINK/USDT pair could climb to the 50-day SMA ($14.43). Sellers are expected to defend this level aggressively because a break above it could signal a potential trend change. The next major resistance is near $18.
Conversely, if the price turns down sharply from the current level or the 50-day SMA, it would indicate that sellers are selling on rallies. A break below $12.73 could keep the pair inside a descending channel for some time.
On the 4-hour chart, buyers are trying to push the price to the resistance line, but sellers are actively defending the $13.50 level. If the price drops and breaks below the 20-EMA, it would suggest a lack of demand at higher levels. The pair could then decline to the 50-SMA.
If, however, the price bounces strongly off the 20-EMA, it would indicate bullish sentiment. The pair could then rise to the resistance line, a key level to watch. A break above it could open the doors for a move toward $15.50.
Sei Price Analysis
Sei gained momentum after breaking above the 50-day SMA ($0.21) on Monday and cleared the $0.29 resistance on Tuesday.
Buyers, however, could not sustain the higher levels, and the price fell back below $0.29 on Wednesday. The positive sign is that bulls bought the dip and pushed the price back above $0.29. The 20-day EMA ($0.23) has started to turn up, and the RSI is in the positive zone, indicating that the path of least resistance is to the upside. The SEI/USDT pair could rise to $0.35 and thereafter to $0.43.
This positive view will be negated in the near term if the price turns down and breaks below the 20-day EMA. That could pull the pair down to $0.19 and then to $0.15.
On the 4-hour chart, both moving averages are sloping up, and the RSI is in positive territory, indicating advantage to buyers. If the price sustains above $0.30, the pair could rise to $0.33.
Sellers will have other plans. They will try to pull the price below the 20-EMA. If they succeed, the pair could slide to $0.27 and then to the 50-SMA. Buyers are expected to defend the 50-SMA aggressively because a deeper correction could delay the resumption of the uptrend.
Frequently Asked Questions
What is an altcoin season?
Altcoin season refers to a period in the crypto market when alternative cryptocurrencies (altcoins) significantly outperform Bitcoin in terms of price gains. It usually occurs when investors diversify from Bitcoin into smaller-cap assets seeking higher returns.
How is Bitcoin's price affecting altcoins?
Bitcoin often sets the overall tone for the crypto market. When Bitcoin is stable or rising, it usually boosts investor confidence, which can lead to increased trading and investment in altcoins. A strong Bitcoin can act as a rising tide that lifts all boats.
What are key indicators to watch for a possible altcoin season?
Monitor Bitcoin dominance (BTC.D), which measures Bitcoin's market cap relative to the entire crypto market. A declining BTC.D often signals capital rotation into altcoins. Also, watch trading volumes, social sentiment, and breakout patterns in major altcoins.
Should I invest in altcoins during Bitcoin’s rally?
It depends on your risk tolerance and strategy. While some altcoins may surge during or after a Bitcoin rally, they are also generally more volatile. It's crucial to research market trends and consider diversifying wisely instead of chasing peaks.
What risks are involved in trading altcoins?
Altcoins are typically more volatile and less liquid than Bitcoin. They may also be subject to lower regulatory clarity, potential project failures, or lower market adoption. Always do thorough research and never invest more than you can afford to lose.
Can market news impact Bitcoin and altcoin trends?
Yes, macroeconomic news, regulatory updates, and technological developments can significantly impact both Bitcoin and altcoins. Positive news often boosts market sentiment, while negative news can trigger selloffs. Staying informed is key to navigating the market. For those looking to stay updated with real-time analysis, using reliable platforms is essential.