Bitcoin Sell-off Puts Entire Altseason At Risk

Key points:

• Bitcoin has pulled back into the $115,000 to $110,530 support zone, where buyers are expected to mount a strong defense.

• ETH has been holding near the overhead resistance as investors pour money into the spot ETH ETFs.

Repeated failure to maintain Bitcoin (BTC) above the $120,000 level in the past few days may have tempted short-term traders to book profits. That pulled the price below the $115,000 level on Friday.

BTC’s consolidation seems to be shifting investor interest toward Ether (ETH), causing a capital rotation, according to a new research shared on X by crypto market insight firm Swissblock. 

According to Farside Investors’ data, spot ETH exchange-traded funds (ETFs) recorded net inflows of roughly $2.4 billion in the past six trading days, well above the $827 million in net inflows into spot BTC ETFs during the same period.

Galaxy Digital CEO Michael Novogratz said on CNBC that ETH could possibly “outperform Bitcoin in the next three to six months.” He added that ETH could go into price discovery if it takes out $4,000.

BitMEX co-founder Arthur Hayes was even more bullish as he anticipates ETH to hit $10,000 by the end of the year.

What are the critical support and resistance levels to watch out for in BTC and the major altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price prediction

BTC has slipped below the 20-day simple moving average ($116,305), indicating that the bears are trying to make a comeback.

However, the bulls are unlikely to give up easily. They will aggressively defend the zone between the 20-day SMA and the $110,530 support. If the price turns up sharply from the support zone, it suggests that the sentiment remains positive and traders are buying on dips. That increases the possibility of a break above $123,218. If that happens, the BTC/USDT pair could surge to $135,729.

This optimistic view will be negated in the near term if the price continues to fall and plummets below $110,530. That could accelerate selling, pulling the pair toward the vital support of $100,000.

Ether price prediction

ETH is facing significant resistance from the bears at the $3,745 level, but a positive sign is that the bulls have not ceded much ground to the bears.

A tight consolidation near a strong resistance increases the likelihood of a break above…