Bitcoin News Today: Bitcoin Consolidates Near $118.9K as 75% Altcoins Signal Altseason Momentum

Bitcoin’s consolidation near $118,920 has drawn attention as traders anticipate a potential breakout above the $120,000–$123,000 resistance range, while altcoins show signs of outperforming the leading cryptocurrency. Analysts highlight that Bitcoin’s next directional move could trigger a significant reallocation of capital into alternative tokens, particularly Ethereum and mid-cap coins, signaling the possible start of a new altseason cycle [1].

Michaël van de Poppe, a noted analyst, observed that Bitcoin filled a key CME gap and experienced a brief correction after liquidity absorption earlier this week. He emphasized that a sustained breakout above $123,000 would set the stage for a fresh all-time high, while failure to clear this threshold could result in a pullback toward $110,000. The market remains in a consolidation phase, with traders closely monitoring price action for clarity on Bitcoin’s trajectory [1].

Parallel momentum in altcoins has intensified, with Merlijn The Trader citing SwissBlock’s Altcoin Vector analysis to underscore a “loading” phase for alternative tokens. The data indicates that 75% of the top 100 altcoins currently display strong impulse signals—a historical precursor to altseason cycles. Ethereum and mid-cap coins, in particular, have begun outperforming Bitcoin as the latter stalls near its upper trading range. Merlijn noted that small-cap and mid-cap projects historically show heightened growth potential during altseason peaks, urging investors to rotate early into promising altcoins [1].

The Altcoin Vector chart, which tracks five major altseason periods from 2023 to 2025, identifies the current market as another rotation phase. This pattern suggests a temporary shift in capital from Bitcoin to alternative cryptocurrencies, a trend that could accelerate if Bitcoin fails to break through its resistance. Analysts caution that understanding these cyclical dynamics is critical for optimizing capital allocation and market timing [1].

Both analysts agree that the coming days will be pivotal. Bitcoin’s inability to breach $123,000 could reinforce altcoin momentum, while a successful breakout might delay the altseason’s onset. Merlijn advised investors to remain agile, emphasizing that early rotations into high-impulse altcoins often yield superior returns during structural shifts. The cryptocurrency market’s evolving dynamics underscore the need for strategic positioning as it approaches a potential inflection point [1].

Source: [1] Bitcoin Consolidates Near $119K as Altcoin Momentum Builds (https://cryptofrontnews.com/bitcoin-consolidates-near-119k-as-altcoin-momentum-builds/)