Altcoins Chase New Highs After Bitcoin Hits $123,000

Key points:

Bitcoin is facing profit booking near $123,000, pointing to a minor consolidation or correction in the near term.

Several major altcoins have broken above their overhead resistance levels, indicating the start of a new uptrend.

Bitcoin (BTC) started the new week on a strong note, rising above $123,000, but higher levels are witnessing some profit booking. A positive sign is that the bulls are trying to maintain the price above $120,000.

Bitcoin exchange-traded funds saw their first-ever back-to-back inflows of more than $1 billion on Thursday and Friday, according to Farside Investors data. That suggests investors expect the rally to continue.

Michael Saylor’s Strategy was not to be left behind, and it resumed its BTC purchase after a one-week gap. The company said in a Monday US Securities and Exchange Commission filing that it had bought 4,225 BTC at an average price of $111,827. The latest acquisition boosted Strategy’s holdings to 601,550 BTC.

BTC’s dominance of the total crypto market capitalization rose above 66% at the end of June but has since retreated below 65%. The small pullback has caused several altcoins to surge in the short term. 

Historically, an altseason starts after BTC’s dominance reverses after hitting 70%. Trader and analyst Rekt Capital said in a post on X that one can imagine the extent of the altcoin rally after BTC’s dominance drops by double digits. 

Will BTC continue to frustrate the bears or correct in the short term? Could altcoins build upon their rally? Let’s analyze the charts of the top 10 cryptocurrencies to find out. 

S&P 500 Index price prediction

The S&P 500 Index (SPX) has been maintaining above the breakout level of 6,147, indicating that the bulls are holding on to their positions as they anticipate further upside.

The 6,147 level is the critical support to watch out for on the downside. A break and close below 6,147 may trap the aggressive bulls, pulling the price to the 50-day simple moving average (5,977).

Contrarily, if the price turns up from the current level of 6,147, it indicates that the uptrend remains intact. The index could surge toward 6,500, where the bears are expected to mount a strong defense.

US Dollar Index price prediction

The US Dollar Index (DXY) rose above the 20-day exponential moving average (97.77) on Friday, indicating that the selling pressure is reducing.

The index could extend the relief rally to the 50-day SMA (98.83), which is likely to act as a stiff obstacle. If the price turns down from the 50-day SMA but rebounds off 97.92, it suggests the index has formed a higher low. That enhances the prospects of a rally above the 50-day SMA. If that happens, the up move could reach 100.54 and then 102.

This optimistic view will be negated in the near term if the price turns down sharply from the current level or the 50-day SMA and plunges below 96.37. That could start the next leg of the downtrend to 95.

Bitcoin price prediction

Bitcoin rallied to a new all-time high of $123,218 on Monday, but the bulls could not sustain the higher levels as seen from the long wick on the candlestick.

The overbought level on the relative strength index (RSI) suggests the BTC/USDT pair may enter a minor correction or consolidation in the near term.

The pullback is expected to find support at the 20-day EMA ($111,843). If that happens, it signals that the bullish momentum remains intact. Buyers will then try to push the pair above $123,218, starting the next leg of the uptrend toward the target objective of $150,000.

The advantage will tilt in favor of the bears if the price plunges below the 50-day SMA ($107,631).

Ether price prediction

The long wick on Ether’s (ETH) candlestick on Monday shows that the bears are active at higher levels.

The first support on the downside is $2,879. If the price rebounds off $2,879, it signals that the bulls are trying to flip the level into support. The ETH/USDT pair may ascend to $3,153 and then to $3,400.

Instead, if the price breaks below $2,879, it suggests profit-booking by short-term buyers. The pair may then descend to the 20-day EMA ($2,707). The bulls will have to successfully defend the 20-day EMA if they want to maintain the bullish momentum.

XRP price prediction

XRP (XRP) skyrocketed above the $2.65 overhead resistance on Friday, indicating that the buyers have overpowered the sellers.

The bears tried to pull the price back below $2.65 on Saturday, but the bulls held their ground. That suggests the bulls are trying to flip the $2.65 level into support. There is minor resistance at $3, but if the level is crossed, the XRP/USDT pair could soar to $3.20 and then to $3.40.

A note of caution is that the rally has pushed the RSI deep into the overbought zone. That increases the risk of a minor correction or consolidation in the short term. However, the bulls remain in charge as long as the price sustains above $2.65.

BNB price prediction

BNB (BNB) rose above the $698 resistance on Monday, but the long wick on the candlestick shows selling at higher levels.

The upsloping 20-day EMA ($669) and the RSI near the overbought zone indicate that buyers are in command. If the price sustains above $698, the BNB/USDT pair could rally to $732 and then to $761. 

The 20-day EMA is the vital support to watch out for on the downside. If the support cracks, the pair could slump to the 50-day SMA ($658) and later to $640. That suggests the break above $698 may have been a bull trap.

Solana price prediction

Solana (SOL) completed a bullish inverse H&S pattern on a close above $159 on Thursday, and the bulls successfully defended the retest of the breakout level on Saturday.

There is minor resistance at $168, but if the level is crossed, the SOL/USDT pair could reach $185. Sellers are expected to defend the $185 level with all their might because if they fail in their endeavor, the pair could surge toward $210 and then to $220.

The 20-day EMA ($155) is the crucial support to watch out for on the downside. Sellers will have to pull and maintain the price below the 20-day EMA to indicate a comeback. 

Related: How high can Bitcoin price go?

Dogecoin price prediction

Dogecoin (DOGE) is facing resistance at $0.21, but a positive sign is that the bulls have not ceded ground to the bears.

The upsloping 20-day EMA ($0.18) and the RSI near the overbought zone indicate the path of least resistance is to the upside. If buyers drive the price above $0.21, the DOGE/USDT pair could climb to $0.26. Sellers are expected to mount a vigorous defense at $0.26, but the pair could surge to $0.35 if the bulls prevail.

Sellers are likely to have other plans. They will try to defend the overhead resistance and keep the pair inside the $0.26 to $0.14 range for some more time.

Cardano price prediction

Sellers tried to halt Cardano’s (ADA) up move at the downtrend line, but the buyers bulldozed their way through.

The close above the downtrend line on Sunday invalidates the bearish descending triangle pattern. The ADA/USDT pair could rise to $0.86, which is likely to act as a resistance. However, the upsloping 20-day EMA ($0.64) and the RSI in the overbought zone indicate that buyers have the edge. A close above $0.86 could propel the price to $1.

This positive view will be invalidated in the near term if the price turns down and breaks below the 20-day EMA. That suggests the break above the downtrend line may have been a bull trap.

Hyperliquid price prediction

Hyperliquid (HYPE) surged above the $45.80 overhead resistance on Friday, signaling the resumption of the uptrend.

The HYPE/USDT pair has reached the psychologically critical level of $50, where the sellers are expected to mount a strong defense. If the price turns down from $50, but rebounds off $45.80, it suggests the bullish momentum remains intact. That increases the likelihood of a rally to $60.

The first sign of weakness will be a break and close below $45.80. The pair could then descend to the 20-day EMA ($41.98), which is likely to attract buyers.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.