Bitcoin News Today: Bitcoin Sideways Correction Sparks Altcoin Rally Amid Profit-Taking

Bitcoin has entered a sideways corrective phase as investors engage in profit-taking and reallocate capital toward altcoins. With Bitcoin (BTC) retreating from its all-time high, the market is closely watching for signs of further consolidation or a potential deeper correction. Analysts highlight technical and on-chain indicators suggesting a possible pullback before the next major bullish phase.

Technical analysis of the daily chart reveals that BTC faces significant resistance near the $123K level. The recent consolidation appears driven by distribution dynamics, with traders locking in gains and redirecting funds to alternative cryptocurrencies. Historically, such cooling periods at peak prices have often catalyzed rallies in the broader altcoin market. A key focus is on the 0.5–0.618 Fibonacci retracement zone, estimated between $107K and $111K. A retest of this area could signal a temporary bottoming process before renewed upward momentum.

On the 4-hour chart, Bitcoin’s price action forms a descending wedge pattern, a bullish continuation structure when broken. The current support zone between $113K and $116K aligns with critical Fibonacci levels and serves as a pivotal test for the market. A successful hold here could drive BTC back toward $123K resistance, while a breakdown may extend the correction to the $111K level. Traders are advised to monitor volume and order flow for confirmation of either scenario.

On-chain data underscores a notable shift in market behavior. Bitcoin has recorded its largest net inflow to exchanges since July 2024, indicating heightened distribution activity. Such inflows often precede deeper corrections, as increased supply becomes available for trading. Analysts suggest this could reflect institutional or large-cap investors reducing exposure near all-time highs, a risk management strategy amid tightening market conditions. However, this capital reallocation may simultaneously boost demand for alternative assets, potentially fueling an altcoin rally.

The interplay between BTC and altcoins remains a key narrative. As Bitcoin consolidates, altcoins have shown relative strength, with investors seeking higher-yield opportunities. This dynamic could persist if the current correction validates the $107K–$111K support range. Conversely, a breakdown below $111K may trigger renewed risk-off sentiment, dampening both BTC and altcoin markets until fresh catalysts emerge.

Market participants are advised to remain cautious, as the on-chain inflow trend and technical patterns suggest a period of volatility. While a rebound to $123K is still within reach, the path of least resistance depends on how the $113K–$116K support zone is tested. The next 7–10 days will be critical in determining whether this correction marks a temporary pause or a more sustained pullback. For now, the broader crypto market appears poised for a rotation phase, with altcoins potentially gaining traction as Bitcoin buyers remain on the sidelines.