Bitcoin Retreats to $118K; Altcoins Slide on Profit-Taking
Bitcoin retreated to around $118,000 after peaking at $123,000, failing to break the $120,000 resistance. The pullback erased over $100 billion from the crypto market cap, which fell from $4 trillion to $3.94 trillion. Bitcoin dominance dropped below 60%. Major altcoins also fell: Ethereum slid from $3,700 to under $3,600, XRP from $3.6 to $3.4, and SUI, ADA, SOL, LINK, XLM and HYPE saw notable declines. DOGE and ETC bucked the trend. Curve DAO Token (CRV) led weekly losses, down 9.94% to $0.9520 after a 50% rally. FARTCOIN, Sonic, SUI and Litecoin also retraced. High trading volumes on CRV ($493 M) and SUI ($2 B) suggest sustained interest. The gap between Bitcoin’s stability and altcoin weakness points to capital rotation and cautious sentiment. Traders should watch Bitcoin’s key resistance and support levels. They should also track liquidity and volume trends. Strategic risk management is advised to navigate potential further altcoin pressure.
Bearish
Bitcoin’s failure to sustain gains above $120,000 and subsequent retreat to $118,000, combined with a $100 billion market cap drop and widespread altcoin sell-offs, indicates short-term bearish momentum. The rejection at key resistance points to profit-taking and cautious trader sentiment. Although high volumes on CRV and SUI signal ongoing interest, the divergence between Bitcoin’s relative stability and altcoins’ weakness suggests further downside risk if Bitcoin cannot reclaim critical thresholds. In the longer term, Bitcoin holding above key support offers some stability, but traders should employ risk management and watch for renewed buying signals.