As we approach the weekend, it’s time to assess the current landscape of the crypto markets, focusing primarily on altcoins and Bitcoin.
The current bias for altcoins remains bullish. The general recommendation continues to favor long positions over shorts. Despite some fundamental pressures, such as the revived trade war tensions between the U.S. and the EU, the technical indicators maintain a bullish trend, particularly for Bitcoin and altcoin indices like “Others” and “Total Three.”
“Others” represents the total crypto market cap excluding the top 10 cryptocurrencies. As it stands, “Others” is positioned midway between a strong support zone and a significant resistance level. Yesterday, the market was close to a breakout, but external news about trade tariffs triggered hesitation. Despite this, the uptrend remains intact. The price is supported by various technical indicators, including the 90-day VWAP and trend lines. This means the trend is still bullish, and the chart continues to reflect strength in altcoins beyond the top 10.
However, current price levels are not optimal for initiating new spot positions. It’s advisable to either wait for a confirmed breakout above resistance or a pullback to strong support zones before entering new trades. That said, individual strong altcoins like MASK, Worldcoin, and AAVE are showing high volume and breakout potential. If these uncorrelated altcoins present favorable setups, traders should not hesitate to go long.
Moving on to “Total Three,” which covers all altcoins excluding Bitcoin and Ethereum, a similar picture emerges. The market cap is consolidating between $860 billion (support) and $940 billion (resistance). As with “Others,” it’s best to wait for a break of resistance or a retest of support before entering major positions.
Turning attention to Bitcoin, we witnessed a drop to around $107,000, a level supported by the 7-day rolling VWAP and the 200 EMA. Although the short-term trend has been lost on the hourly chart, Bitcoin remains fundamentally strong. There is still some uncertainty due to potential 50% tariffs being discussed between the U.S. and the EU. These developments could impact market sentiment significantly, but the long-term uptrend in Bitcoin and equity markets remains unbroken.
Bitcoin may experience sideways movement with low volatility over the weekend unless new, impactful developments arise. If a deeper correction occurs, the $105,000 level will be critical, and traders may consider buying opportunities if the price reclaims $107,000 after a dip. Looking ahead, the next key price target is around $110,000, where an intraday resistance and imbalance exist.
In summary, the market outlook remains bullish in the mid-to-long term, but caution is warranted in the short term. Wait for clear confirmation or better entry zones before entering new positions. Focus on uncorrelated altcoins showing strength and keep an eye on Bitcoin’s response to ongoing global economic news. As always, stay informed, stay strategic, and enjoy your weekend.
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