- Bitcoin trades within a tight range after hitting a new high, while key indicators point to weakening momentum.
- Ethereum and XRP show bullish signs, holding support levels as traders eye fresh breakouts.
The largest digital currency, Bitcoin (BTC), is holding its ground after reaching a new all-time high above $123,000 last week. While the price moves sideways, attention is shifting to Ethereum and XRP as both show signs of strength. With traders on edge, the market is poised for a potential shift in momentum across major altcoins.
Bitcoin Trades Sideways as Market Pauses
It is worth noting that, after setting a fresh record on Monday, Bitcoin has entered a period of low movement. The price action has been tight, trading between $116,000 and $120,000. As of the time of writing, Marketcap data shows it was trading at $119,342.40, up by 1.66% in 24 hours.
If Bitcoin dips below $116,000 and holds that level on a daily close, there is room for a pullback toward the 50-day EMA, which sits around $110,297. That would be the first major support zone if sellers take over.
The RSI, now at 64, has cooled from the high of 70 recorded last week, showing that buying pressure has weakened. The MACD is close to a bearish crossover. If that happens on the daily chart, it could send a sell signal and invite more short-term losses.
On the flip side, if the price breaks above $120,000 and closes firmly, a retest of the record high at $123,218 is likely. This could open the door to a new opportunity if volume picks up. Meanwhile, as noted in our previous article, Bitcoin’s latest golden cross mirrors patterns seen before major rallies in 2017 and 2020.
Ethereum and XRP Push Higher with Momentum Building
As mentioned in our previous news brief, Ethereum closed last week with a substantial 26% gain. It broke above key resistance at $3,730 and now trades around $3,739. If that level holds as support, ETH could stretch further to test the $4,000 mark. The RSI sits high at 86, suggesting strong overbought momentum. The MACD indicator also remains in bullish territory.
Ripple-associated digital asset XRP also performed well, hitting $3.66 on Friday before easing slightly to $3.47 today atop a 2% gain.
Additionally, as detailed in our last news piece, XRP shattered months-long resistance as volume surged past $23 billion.
It is worth noting that over the weekend, it found support near the $3.40 mark. If it manages to stay above that level, bulls may aim for a retest of $3.66 and $4.13 based on key Fibonacci levels.
Still, despite overbought signals appearing on both charts, buyers remain active. Notably, as Bitcoin steadies, the focus has shifted to altcoins. If momentum holds, Ethereum and XRP could lead the charge as altseason picks up steam.
More importantly, while the entire crypto market continues to see gains, data show that Bitcoin outpaced traditional stocks by a considerable margin during the past year, gaining 85% from $63,970 on July 21, 2024.
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