As Bitcoin (BTC) continues its descent toward the crucial $110,530 support level, the crypto market is watching closely for signs of a rebound. This pivotal moment could not only dictate Bitcoin’s direction but also influence the performance of major altcoins such as Ether (ETH), Binance Coin (BNB), Chainlink (LINK), and Mantle (MNT).
Bitcoin Approaches Critical Support Zone
Bitcoin has faced persistent selling pressure, with its price recently bouncing off an inverse head-and-shoulders neckline but failing to breach the overhead hurdle at the 20-day exponential moving average (EMA) of $117,032. This has left BTC on a gradual move toward $110,530, a level where buyers are expected to step in and potentially reverse the bearish trend.
If Bitcoin rebounds strongly off this support, it could pave the way for a recovery to $120,000 and possibly challenge its all-time high of $124,474. However, failure to maintain this support level could result in a sharp decline to $107,000 or even $100,000. Key indicators such as a downward-sloping 20-EMA and a negative relative strength index (RSI) signify that bears currently hold an advantage in the near term.
Altcoins Eye Potential Recovery
A Bitcoin rebound at the $110,530 level may catalyze upward momentum for prominent altcoins. Here’s how they are shaping up:
Ether (ETH)
ETH has retraced to the $4,094 breakout level. While the upsloping moving averages signal bullish advantage, the negative divergence on the RSI suggests weakening momentum. A rebound at $4,094 could push ETH to $4,576 and beyond, but a break below this level may drive the price to $3,745 or lower.
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Binance Coin (BNB)
BNB faces stiff resistance in the $861 to $869 zone. A bullish breakout could propel its price toward the psychological $1,000 mark, while a breakdown below the 20-day EMA ($811) might see BNB consolidating within a $732 to $869 range short-term.
Chainlink (LINK)
Chainlink is witnessing profit booking at $27. A strong bounce off the 20-day EMA ($21.49) might reignite a rally to $31 or even $36. However, failure to hold this support could lead LINK to its 50-day simple moving average (SMA) at $17.97.
Mantle (MNT)
MNT has shown aggressive gains, with strong buying at dips. A break above $1.42 could see the altcoin rally to $1.67, while a decline below $1.20 might fuel a more pronounced correction to the 20-day EMA ($1.07).
What’s Next for the Market?
Crypto enthusiasts must remain vigilant as Bitcoin’s price flirtation with key support levels develops over the coming days. A decisive bounce could re-energize the market, allowing altcoins to capitalize on bullish momentum. However, investors are warned to exercise caution and conduct thorough research before making any moves in the volatile crypto landscape.
Note: This article provides informational content and does not constitute investment advice. Traders should consult a financial advisor and perform their own due diligence before making any decisions.
