- Bitcoin is consolidating near $119K as traders watch for a breakout above $123K while altcoins gain momentum.
- Altcoins, led by Ethereum and mid-caps, show strong signals of a new altseason as Bitcoin struggles to break resistance.
- Analysts warn that Bitcoin’s next move could decide if capital shifts heavily into altcoins in the coming days.
Bitcoin traded around $118,920 this week as analysts highlighted a l decision point for the leading cryptocurrency. Michaël van de Poppe noted that Bitcoin filled a key CME gap and briefly corrected after taking liquidity on Monday. He emphasized that a breakout above the $120,000 to $123,000 resistance range could set the stage for a new all-time high. Besides, the market showed clear signs of consolidation.
Altcoin Rotation Signals Altseason Potential
Analyst Merlijn The Trader shared data from SwissBlock’s Altcoin Vector analysis, suggesting altcoins are preparing for strong performance. He stated that altcoins are “loading” rather than lagging, citing clear rotation patterns. Consequently, Ethereum and mid-cap altcoins have started showing stronger momentum as Bitcoin stalls near its upper range.
Source: Merlijn The Trader
The comprehensive Altcoin Vector chart illustrates five major “altseason” periods from 2023 to 2025, where altcoins outperformed Bitcoin. Moreover, it identified current market conditions as another rotation phase. This phase often leads to capital flowing from Bitcoin into alternative cryptocurrencies. Additionally, 75% of altcoins in the top 100 now display strong impulse signals, which historically mark the start of altseason cycles.
Traders Focus on Key Levels and Market Timing
The $123,000 resistance level for Bitcoin is still a significant obstacle. While a confirmed breakout might lead to fresh positive sentiment, a failure might result in more significant declines toward $110,000.
Merlijn advised investors to rotate early into strong-performing altcoins rather than holding only Bitcoin during this phase. Furthermore, he stressed that understanding market cycles improves timing and capital allocation strategies.
The chart also revealed that small-cap and mid-cap coins tend to outperform in altseason peaks, offering higher growth potential.
Both analysts agree that the coming days will be critical. Bitcoin’s consolidation near record levels and growing altcoin momentum suggest the cryptocurrency market is nearing a major shift.
