Bitcoin News Today: Bitcoin Retraces After $118K Test as Momentum Fails, Altcoin Season Remains Uncertain

Late 2025 has witnessed a period of uncertainty in the cryptocurrency market, as Bitcoin's price has retreated after briefly testing the $118,000 level. According to Swissblock, a prominent crypto analysis firm, this pullback represents a "failure of momentum," as Bitcoin's inability to maintain upward pressure has led to renewed downward movement. The firm described the current phase as a "failed breakout zone," suggesting that consolidation could persist for an extended period before a decisive directional move occurs [1].

Despite the recent correction, Swissblock noted that selling pressure has been contained and is not excessive. The firm emphasized that this is a cooling-off phase rather than a sign of capitulation, highlighting that 96% of Bitcoin’s supply remains in a profitable state. This suggests that major holders are still holding positions, although any new supply entering the market could encounter increased selling pressure until demand stabilizes [1].

On a fundamental level, Bitcoin continues to show resilience. The Blockchain Fund Index (BFI) remains neutral at 60, indicating that network growth is slowing but liquidity is recovering. These conditions support a sideways trend and could eventually facilitate a strong breakout if momentum realigns [1].

Bitcoin’s market dominance has also seen a notable decline, dropping to 6.30%. This shift has sparked debate among analysts about whether it signals the beginning of an "Altcoin Season," a term referring to periods when smaller cryptocurrencies outperform Bitcoin. While lower dominance often precedes increased activity in altcoins, the market remains cautious. Only 5% of the top 100 crypto assets showed positive momentum, and rotations into altcoins are becoming increasingly selective [1].

Swissblock’s outlook for altcoins is more cautious than for Bitcoin. While Ethereum has shown greater structural resilience, the broader altcoin market is still awaiting a clear catalyst for a widespread rally. Analysts warn that macroeconomic factors such as interest rates and inflation will continue to influence market dynamics, and the timing of any altcoin-driven surge remains uncertain [1].

According to Swissblock, the current phase offers an opportunity for traders to prepare for a potential breakout. As Bitcoin consolidates, altcoins such as Ethereum may be poised to lead a rally if momentum returns. However, investors are advised to remain selective and monitor key indicators like trading volumes, Bitcoin’s dominance, and overall market sentiment before making decisions [1].

[1] Swissblock. Why Did Bitcoin Price Decline? Is the Altcoin Season in Trouble? Here Are All the Answers and Predictions for What’s to Come. 2025. https://coinmarketcap.com/community/articles/688cae888da7375e6a5ede02/