Bitcoin’s recent price action has investors on edge, as the world’s largest cryptocurrency continues to struggle beneath the psychological resistance of $120,000.
Despite multiple intraday rallies, BTC has remained range-bound between $115,600 and $119,500, failing to establish a clear breakout direction.
Crypto market analyst Michaël van de Poppe emphasized that Bitcoin’s inability to overcome $119,500 is a signal of fading bullish conviction. According to his latest update, unless this resistance is breached with strong volume, the price risks slipping further, with a key downside support sitting around $115,600.
“A failure to hold $115,600 could see a deeper correction toward the $110,000 to $112,000 region,” van de Poppe noted. “This range holds significant liquidity and is likely to act as a magnet for volume accumulation or sharp volatility.”
Liquidity Pressure Keeps Bitcoin in Check
While macroeconomic factors, including recent U.S. inflation data and uncertainty around Federal Reserve policy, continue to weigh on market sentiment, technical indicators show a maturing consolidation phase.
Analysts point out that these sideways movements are often precursors to significant directional shifts.
Volume across major spot exchanges has remained relatively low during this period, suggesting a wait-and-see approach among larger investors. Meanwhile, derivatives data reveal a buildup in short positions, hinting at a cautious mood.
Altcoins Surge as Market Focus Shifts
As Bitcoin battles to regain momentum, attention is increasingly shifting toward altcoins. Ether Wizz, a crypto analytics platform, reports that open interest in major altcoins such as Ethereum (ETH), XRP, and Solana (SOL) has surged past $45 billion since early July.
This figure marks a historic high and highlights the growing appetite for altcoin leverage among retail and institutional traders.
For the first time since 2022, Ethereum has overtaken Bitcoin in perpetual futures volume, according to Deribit and Bybit exchange data. The shift points to rising enthusiasm for altcoins, particularly in sectors such as AI-based tokens, meme coins, and decentralized finance (DeFi) projects.
Ethereum investors are also holding firm above their cost basis, a signal of long-term confidence, although such positions may be vulnerable to broader market corrections if sentiment shifts.
Regulatory Tailwinds Fuel Altcoin Optimism
Contributing to the altcoin rally is the recent signing of a comprehensive digital asset bill by U.S. President Donald Trump.
The legislation introduces regulatory clarity for crypto assets, particularly in the classification of tokens and guidelines for institutional custody. Market participants see this move as a green light for broader institutional entry into altcoins, potentially igniting a new wave of capital inflow.
“Altcoins are currently benefiting from both technical strength and a friendlier regulatory environment,” said a CryptoRank analyst. “The diversification away from Bitcoin is driven by opportunity, not panic.”
Data from CryptoRank also confirms that Bitcoin’s market dominance has been steadily declining since mid-July. The shift reflects a redistribution of capital into alternative tokens with higher short-term performance potential.
Conclusion: A Transitional Phase for the Crypto Market
Bitcoin remains locked in a tight consolidation range, but the broader crypto market is anything but stagnant. Altcoins are gaining ground as traders seek higher returns and diversify portfolios, while a mix of regulatory developments and speculative activity continues to reshape the landscape.
The next decisive move for Bitcoin, either above $120,000 or below key support, could determine whether altcoins sustain their current lead or face renewed competition from the crypto heavyweight. Until then, the market remains in flux, with momentum temporarily favoring the alternative assets.
