Bitcoin continues to face strong selling pressure around the $110,500 mark, indicating that the bears are still determined to defend this important resistance area. However, an encouraging signal for the bulls is that the price remains above the moving averages, reflecting investor resilience and a reluctance to take profits at this time.
According to analysts, the Bollinger Bands are showing signs of contraction, often a signal for strong volatility to occur soon. John Bollinger – the creator of this famous indicator – has also shared on platform X that Bitcoin may be 'ready for an upward breakout'.
Optimism remains present as capital continues to flow into Bitcoin exchange-traded products (ETPs), with a total net capital flow of $790 million in the week ending Friday, according to data from CoinShares. However, this figure has decreased from three weeks prior – when inflows peaked at $1.5 billion – indicating that investors are becoming more cautious as prices approach historical highs.
James Butterfill, Head of Research at CoinShares, stated that the decline in capital flows reflects market cautiousness as Bitcoin approaches a key resistance threshold.
Can the bears pull the price below the moving averages, or will the bulls continue to successfully defend the strategic support area? And what will happen to altcoins if the market becomes volatile? Let's analyze the charts of the top 10 cryptocurrencies for answers.
Technical analysis of SPX
The S&P 500 (SPX) has extended its upward trend last week, indicating that buying interest from the bulls remains strong at higher price levels.
Typically, after breaking a significant resistance level, the price will return to test this area. Therefore, the index turning back to test the 6.147 range is entirely possible. If the price rebounds strongly from 6.147, it indicates that the bulls have turned resistance into support, increasing the likelihood that the index will continue its upward trend and move towards the 6.500 level.
The bears need to pull the price below the 20-day exponential moving average (EMA) at 6,099 to weaken the uptrend. At that point, the index could drop to the simple moving average (SMA) 50-day at 5,904.
Technical analysis of DXY
The US Dollar Index (DXY) turned upward from the level of 96.37 on Tuesday, indicating buying interest at lower price levels.
This recovery could bring the index back to the breakout area at 97.92 – where strong selling is expected to occur. If the price turns sharply down from 97.92, it indicates that the bears are trying to convert this area into resistance, increasing the risk of breaking below 96.37. At that point, the index could drop to the 95 level.
Conversely, if the price breaks and closes above 97.92, it implies that the bulls are returning to the market. Subsequently, the index could move towards the 50-day SMA at 99.03 – this is an important level to watch, as if it breaks, the index could rise to 100.54 and then to resistance at 102.
Technical analysis of BTC
Bitcoin is currently fluctuating in a narrow range between the 20-day EMA ($107.211) and the upper resistance of $110.530.
The accumulation range in this narrow band is unlikely to last long. Although a breakout is highly probable, it is very difficult to predict the direction. If the price drops sharply and breaks through the moving averages, the BTC/USDT pair could retreat to $104,500 and then to the psychological level of $100,000.
Conversely, if it breaks and closes above $110,530, it will open the door for a rise to $111,980 and then to the neckline of the inverted head and shoulders pattern. If it closes above this neckline, the next upward trend could bring the price close to the $150,000 area.
Technical analysis of ETH
Ether (ETH) has been stuck in the price range from $2,323 to $2,738 for several days now, with attempts to break both up and down proving unsuccessful.
The bulls are trying to push the price above $2,635, opening up the opportunity for a rise to $2,738. However, the $2,738-$2,879 range may serve as a strong resistance area. If the price turns down from this range, ETH/USDT may find support at the 20-day EMA. If the price bounces from the 20-day EMA, the bulls will continue to attempt to push the price above $2,879.
On the contrary, if the price breaks and closes below the 20-day EMA, it indicates that ETH may continue to fluctuate within the accumulation range. The bears will dominate if the price closes below $2,111.
Technical analysis of XRP
The bulls have maintained XRP above the 20-day EMA ($2.20) in recent days, indicating that the bears have not yet acted decisively.
The 20-day EMA is starting to trend upwards, along with the RSI indicator jumping into positive territory – factors indicating that the favorable trend is leaning towards bullish. The resistance level at $2.34 may be broken, allowing the XRP/USDT pair to move towards $2.48, then to $2.65. To initiate a new uptrend towards $3, the bulls need to overcome the barrier at $2.65.
Conversely, if the price turns around and breaks the 20-day EMA, it may cause the price to continue fluctuating within the range of $2 to $2.34 for some time.
Technical analysis of BNB
BNB bounced from the 20-day EMA ($652) on Saturday, indicating that market sentiment remains positive and traders are buying during price corrections.
The 20-day EMA is trending upwards and the RSI index is just above average, indicating that the bulls have a slight advantage. If the resistance area of $665 is broken, the BNB/USDT pair could rise to $675, then to $698. However, the bears are likely to exert significant pressure at the $698 level, as if this level is breached, the pair could be pushed up to $732.
This positive scenario will lose validity in the short term if the price turns down and breaks below the moving averages. At that point, the pair could fall to $636.
Technical analysis of SOL
The bulls have successfully pushed Solana (SOL) above the 20-day EMA ($149) on Sunday, but are struggling to face the 50-day SMA ($154).
The 20-day EMA has started to flatten, and the RSI index is just above the average, indicating that supply and demand are in a balanced state. If the bulls can push the SOL/USDT pair above $159, the door to an increase to $185 will open. There is a small resistance at $168, but this level is unlikely to hinder the upward momentum.
On the contrary, the first support area is at $145, followed by $137. If the price breaks below $137, the advantage will shift to the bears, and the pair could fall to $126.
Technical analysis of DOGE
Dogecoin has risen above the 20-day EMA ($0.16), indicating that the bulls are trying to re-enter the market.
If buyers maintain the price above the 20-day EMA, the DOGE/USDT pair could rise to the 50-day SMA ($0.18), then to $0.21. The bears are expected to hold their ground at $0.21, but if the bulls succeed, the price could break out to $0.26.
Conversely, if the price turns down from the current level and breaks below the 20-day EMA, it indicates that the bears are selling off whenever there is a small recovery. This scenario could cause the price to drop to the $0.14 support area.
Technical analysis of ADA
Cardano is sticking to the 20-day EMA ($0.58), indicating that the bulls are still maintaining buying pressure.
The 20-day EMA is flat and the RSI index is slightly below average, indicating that selling pressure is gradually decreasing. If buyers push the price above the 20-day EMA, the ADA/USDT pair could rise to the 50-day SMA ($0.64), then to the downtrend line. The bulls need to break and hold the price above this trend line to signal a potential reversal.
Conversely, if the bears pull the price below the support area of $0.50, the descending triangle pattern may complete. This could trigger a deep drop to the $0.40 area.
Technical analysis of HYPE
Buyers have kept the price of Hyperliquid (HYPE) above the 20-day EMA ($38.41) for several days now, indicating that buying interest remains present at lower price levels.
However, the bulls are still struggling as they have not been able to push the price above the short-term resistance at $41.23. If the price bounces from the current area or from the 20-day EMA and conquers the $41.23 level, it will indicate that the buyers are regaining control of the market. In this scenario, the HYPE/USDT pair could accelerate towards the next resistance area in the range of $42.50–$45.80.
Conversely, if the price slips and closes below the 50-day SMA ($36.60), this will be the first warning signal of weakness. At that point, selling pressure may increase, pulling the price down further to the $33.25 mark, even to $30.69.