Bitcoin Consolidates Below $110K as Key Altcoins Show Signs of Strength

A pop art illustration of a golden Bitcoin coin split cleanly in half, with jagged edges, against a vibrant, solid-colored background. A pop art illustration of a golden Bitcoin coin split cleanly in half, with jagged edges, against a vibrant, solid-colored background.
A pop art rendering of a Bitcoin coin broken in half, conceptually illustrating market volatility or a significant event in the cryptocurrency world.

NEW YORK, NY – Bitcoin’s recent rally has stalled after facing significant resistance near the $110,000 price level, leading to a pullback as short-term traders appeared to cash in on recent gains. While the leading cryptocurrency consolidates, this price reset may be creating a favorable environment for several other digital assets, with Binance Coin (BNB), Solana (SOL), Chainlink (LINK), and Aave (AAVE) showing potential for upward movement.

The price of Bitcoin has dipped to around $108,000 after failing to secure a close above the critical $110,000 mark. According to analyst Daan Crypto Trades, a sustained price above $110,000 would signal continued strength, whereas a drop below the $108,000 support level could trigger a more significant correction. Sellers have successfully pushed the price back below a key downtrend line, a negative signal for immediate momentum.

Looking at the broader economic landscape, some analysts are pointing to macroeconomic factors as a potential catalyst for Bitcoin’s next major move. A prediction from the service Kalshi anticipates the U.S. national debt will climb to $40 trillion by 2025, a substantial increase from $23.2 trillion in 2020. Historically, increases in U.S. government borrowing have correlated with rising Bitcoin prices. For instance, Bitcoin’s value jumped approximately 38% after President Donald Trump signed a major COVID-19 spending bill in late 2020. Some analysts believe a future spending initiative, which President Trump has dubbed the “Big Beautiful Bill,” could similarly boost the cryptocurrency market.

Despite general optimism for the continuation of the bull market, some experts advise caution. Crypto analyst Rekt Capital recently warned that if Bitcoin follows its 2020 market cycle, the current bull run might only last for another two to three months. For now, buyers are expected to strongly defend key moving average price levels; a failure to do so could see Bitcoin’s price fall toward $105,000 or even the psychological support level of $100,000.

Altcoins Show Promise Amid Bitcoin Pause

While Bitcoin navigates its current resistance, several other major cryptocurrencies, or altcoins, are showing signs of strength.

  • Binance Coin (BNB): BNB has rebounded from a key breakout level and surpassed its 50-day simple moving average of $654. If the price remains above its moving averages and breaks through the $665 resistance, analysts see a potential rally toward $675 and possibly as high as $698. A drop back into its previous descending channel would negate this positive outlook.
  • Solana (SOL): Solana has struggled to break past the $159 resistance, resulting in a minor pullback. The balance between buyers and sellers appears even, but a definitive move above $159 could clear the way for a rally to $168 and then $185. Conversely, if the price falls below the crucial support at $140, it could signal a deeper decline toward $126.
  • Chainlink (LINK): Chainlink successfully rose above its 20-day exponential moving average but was unable to overcome resistance at its 50-day simple moving average near $14.09, indicating selling pressure at higher prices. If buyers can defend the $12.73 support level and push the price above the 50-day average, a surge toward $15.66 and then $18 is possible.
  • Aave (AAVE): Aave is currently meeting resistance at the $286 mark. A positive sign for the asset is that buyers have so far prevented the price from dipping below its moving averages. If the price can rebound from its current position and decisively break through $286, it could open the door for a significant jump to the $325 level.

Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *