Bitcoin News Today: Bitcoin Clings to $118,000 as Altcoins Rally on ETF Inflows and Strong Technicals

Bitcoin remains resilient near $118,000 after Monday's failed attempt to surpass its all-time high of $123,218, with technical indicators suggesting a balance between buyers and sellers [1]. The failure to break above this key level triggered a pullback across the altcoin market, but several major tokens, including Ether (ETH), BNB (BNB), Chainlink (LINK), and Uniswap (UNI), have shown signs of recovery and continued strength [1].

Ether has emerged as a standout performer, with spot Ethereum ETFs recording record net inflows of $1.01 billion on Monday, signaling strong institutional interest in the second-largest cryptocurrency [1]. On-chain data indicates that the price has moved above $4,366, supported by upward-sloping moving averages and a relative strength index (RSI) in overbought territory, suggesting that the upside remains the path of least resistance [1]. If buyers manage to push ETH above $4,868, it could validate the ongoing bullish momentum. However, a breakdown below $4,094 could signal profit-taking and lead to a retest of the 20-day moving average at $3,833 [1].

BNB has been trading in a tight range between $792 and $827 over the past three days, reflecting indecision in the market [1]. A breakout above $827 could target $861 and potentially $900 if the bullish momentum continues. On the other hand, a drop below the 20-day moving average at $787 would raise concerns about a deeper correction to key support levels at $761 and $732 [1].

Chainlink has shown renewed strength after breaking above the $18 resistance level, with buyers pushing the price past $22.70 and toward $27 [1]. The RSI on the 4-hour chart remains in overbought territory, reinforcing the dominance of buyers. However, a sharp pullback below $20.83 could lead to a test of support at $18, challenging the continuation of the current uptrend [1].

Uniswap has also demonstrated resilience, bouncing off the 50-day moving average at $9.05 and showing signs of buying pressure at lower levels [1]. While selling pressure has emerged at $12, the bulls have managed to defend the 20-day moving average at $10.19. A successful break above $12 could target $15, while a breakdown below the 50-day SMA would signal a potential trend reversal [1].

Analysts have expressed mixed views on Bitcoin’s next move. Some, like ZAYK Charts, suggest that the Wyckoff method indicates BTC could be entering a distribution phase, with the potential for a pullback to $95,000 if confirmed [1]. Others remain cautiously optimistic, noting that as long as Bitcoin stays above the 20-day moving average at $116,779, it retains the potential to retest the $123,218 resistance and push higher toward $135,000 [1].

Overall, the altcoin market is showing signs of resilience, with ETH leading the charge amid strong ETF inflows and favorable technical setups. The performance of BNB, LINK, and UNI will be critical in determining whether the current altcoin rally can continue or if a broader correction is imminent [1].

Source:

[1] Bitcoin holds $118K while ETH, BNB, LINK, UNI aim to extend the altcoin rally. https://cointelegraph.com/news/bitcoin-holds-dollar118k-while-eth-bnb-link-uni-aim-to-extend-the-altcoin-rally