Bitcoin News Today: Crypto Market Cap Drops 4% to $3.85 Trillion Amid Bitcoin Consolidation

Bitcoin (BTC) has been in a consolidation phase, with bears preventing bulls from sustaining prices above $120,000. According to Jurrien Timmer, Director of Global Macro at Fidelity, BTC is still in the middle of its adoption curve compared to past internet adoption, suggesting more room for growth. The recent rally in BTC and the passing of key legislation in the US House of Representatives have boosted sentiment in the cryptocurrency sector, pushing the total market capitalization to just under $4 trillion. However, the market cap has since cooled off to $3.85 trillion.

Ether (ETH) is leading the charge among altcoins, signaling the start of an altseason. While sharp rallies are common during bull markets, traders should be prepared for frequent pullbacks. It is advisable to stick to sound money management principles rather than blindly chasing prices higher.

Analyzing the charts of the top cryptocurrencies, BTC's shallow pullback suggests that bulls are not in a hurry to book profits, anticipating the uptrend to continue. The upsloping 20-day exponential moving average and the relative strength index (RSI) in positive territory indicate an advantage to buyers. If the price surges above $123,218, the BTC/USDT pair could resume its uptrend, potentially reaching $135,729 and then $150,000. However, if bears pull the price below the $110,530 support, it could tempt short-term traders to book profits, pulling the price to $100,000.

BNB (BNB) has picked up momentum after breaking and closing above the $698 resistance. The BNB/USDT pair pierced the $732 resistance and reached the $761 level, where bears are mounting a solid defense. If buyers do not allow the price to dip below $732, it suggests a positive sentiment, enhancing the prospects of a break above $761. The pair could then soar to $794. Conversely, if the price continues lower and breaks below $732, it signals the possibility of a range formation, with the pair swinging between $698 and $761 for some time.

Stellar (XLM) has rallied sharply in recent days, reaching the overhead resistance at $0.51. The rally has pushed the RSI into overbought territory, signaling a possible consolidation or correction in the near term. If buyers do not allow the price to dip below $0.43, the XLM/USDT pair could break out above $0.51, potentially starting the next leg of the uptrend to $0.64 and later to $0.80. However, if the price turns down and closes below $0.43, the pair may slide to the 20-day EMA ($0.36).

Litecoin (LTC) broke above the $107 resistance but could not sustain the higher levels. The bulls are unlikely to give up easily and will try to drive and sustain the price above $107. If successful, the LTC/USDT pair could surge to $130 and then to $140. However, sellers may try to retain the price below $107, potentially causing the pair to slump to the 20-day EMA ($93). A deeper pullback could delay the resumption of the up move.

Ethereum Classic (ETC) skyrocketed above the $21.70 resistance, indicating that bulls are on a comeback. The sharp rally has pushed the RSI into overbought territory, suggesting a minor consolidation or correction in the near term. The ETC/USDT pair may retest the breakout level of $21.70. If the price rebounds off this level with strength, it indicates that buyers have flipped the level into support, increasing the likelihood of a rally to $27. Conversely, a drop below $21.70 suggests the markets have rejected the breakout, potentially causing the pair to plummet to the 20-day EMA ($18.50).

In summary, while Bitcoin's consolidation phase continues, the charts for BNB, XLM, LTC, and ETC are looking positive. Traders are shifting their focus to these altcoins as they show strong potential for growth. The overall sentiment in the cryptocurrency sector remains bullish, with ETH leading the charge among altcoins. However, traders should be prepared for frequent pullbacks and stick to sound money management principles.