Altcoin market shows signs of exhaustion as it corrects from a 60% rally, stalling at $1.44T after peaking at $1.6T in July.
Bitcoin struggles below $115.7K resistance with bearish pressure growing as failure to break $119K could trigger a drop below $100K.
Market enters high-stakes zone as both altcoins and Bitcoin hover near key technical levels, signaling potential for sharp volatility ahead.
The crypto market is flashing warning signs as both Bitcoin and altcoins enter crucial technical zones. Analysts are raising alarms over potential breakdowns or major rallies ahead.
According to TradingView data, the total altcoin market cap (excluding Bitcoin) sits at $1.44 trillion. This marks a 2.56% drop from its recent highs. The broader market surged from $1 trillion in April to nearly $1.6 trillion in July. However, it has since reversed course. Crypto analyst IncomeSharks notes that altcoins want to push higher, but momentum is stalling.
Source: IncomeSharks
Altcoin Momentum Slows, Correction Phase Confirmed
The growth from April to July showed a solid 60% increase in value for altcoins. This reflected strong retail interest and growing optimism. However, the recent downturn paints a different picture. Prices have started pulling back after peaking in mid-July.
The decline appears to be a healthy correction. A downward blue trendline shows a shift from bullish to consolidating behavior. The recent daily candlestick formations also reveal a battle between bulls and bears. This suggests short-term uncertainty.
Moreover, the pullback could open opportunities. Historically, altcoins tend to cycle through strong rallies followed by cooling-off periods. Investors now wait to see if key support levels hold. If not, another leg downward could unfold.
Bitcoin’s $115.7K Level Holds the Key
Bitcoin’s price action mirrors this uncertainty. Currently trading around $113,444, BTC is facing heavy resistance near $115,700. Crypto analyst CryptoPatel states that as long as Bitcoin trades below this line, bears remain in control.
Source: CryptoPatel
Earlier in July, Bitcoin surged from $105,000 to almost $123,000. However, the rally was rejected just below $122,000. Since then, BTC has entered a sideways trading range. Support rests at $107,805 and a deeper level near $99,479.
Consequently, if Bitcoin fails to break above $119,000, further downside could hit. A breakdown might send BTC below $100,000. Additionally, trading volumes remain moderate, showing traders are cautious and waiting for clear signals.
Hence, the market sits on the edge. Altcoins are cooling off, while Bitcoin tests its resistance. A breakout or breakdown in either segment could shake the market. Consequently, all eyes are on the next few sessions to confirm direction.
The post Altcoin Market Wavers as Bitcoin Faces Breakdown Risk appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.