Bitcoin, the stalwart of the cryptocurrency world, appears to be running out of steam. As of today, analysts are noticing telltale signs of fatigue, hinting at a potential slide back toward the $110,530 support level. The looming question on everyone’s mind: will this downturn drag altcoins down the rabbit hole as well?
Bitcoin’s Waning Momentum
In recent weeks, Bitcoin has been exhibiting a pattern that seasoned traders recognize all too well: exhaustion. After an impressive rally earlier this year, the digital asset seems to have hit a plateau, unable to sustain its upward momentum. “It’s not unexpected,” says Clara Zhang, a cryptocurrency analyst at CryptoInsights. “Every bull run needs a breather, and Bitcoin, having had quite the sprint, seems to be catching its breath now.” As explored in our recent coverage of Bitcoin’s Bull Run Losing Steam, market breadth indicators suggest a similar cooling off period.
The $110,530 support level has emerged as a critical marker for traders. Should Bitcoin breach this threshold, it could trigger a cascade of sell-offs, further eroding investor confidence. Yet, it’s not all doom and gloom. “There’s always the possibility of a reversal,” notes Zhang, “especially if macroeconomic factors, like favorable regulatory news, come into play.”
Altcoins: Following the Leader?
The crypto market, notorious for its herd mentality, might see altcoins mirroring Bitcoin’s trajectory. Ethereum, Bitcoin’s closest competitor, has shown resilience, but with Bitcoin’s slide, the pressure mounts. Traders are keeping a close eye on Ethereum’s $3,800 support level—a potential breaking point that could send ripples through the market.
Other altcoins are also under scrutiny. XRP, BNB, and Solana have each experienced their share of volatility. “Altcoins often react to Bitcoin’s moves, sometimes even with amplified effects,” explains Jake Thompson, a blockchain consultant. However, there are exceptions. “Projects with strong fundamentals and unique utility—like Chainlink and Cardano—might buck the trend, at least in the short term.”
The Bigger Picture
This phase of market uncertainty hasn’t come out of the blue. Historically, Bitcoin’s performance has been a bellwether for the entire cryptocurrency market. The digital asset’s current lethargy can be partly attributed to external pressures, including global economic jitters and regulatory developments. For instance, recent discussions about tighter crypto regulations in major markets have stirred anxiety among investors. Meanwhile, the ongoing debates around central bank digital currencies (CBDCs) have added another layer of complexity to an already convoluted landscape. The potential for price swings is further explored in our analysis of Bitcoin Pulls Back to $119K as Looming Inflation Data Could Bring Price Swings.
Looking Ahead
As Bitcoin hovers around its support level, the crypto community is left pondering the next move. Will Bitcoin rebound with renewed vigor, or are we in for a prolonged lull? The answer might lie in upcoming economic indicators and policy announcements scheduled for later this year.
But here’s the catch: the crypto market is nothing if not unpredictable. It thrives on speculation, and this inherent volatility is what both terrifies and attracts investors. As traders brace for the next wave, they might do well to remember the market’s cyclical nature. After all, what goes down can—and often does—come back up again.
In the weeks and months to come, the interplay between Bitcoin’s performance and altcoin responses will likely dominate discussions. Whether this trend of exhaustion continues or the market finds new vigor remains an open question. But one thing is certain: the crypto world will be watching closely, ready to adapt to whatever comes next.
Source
This article is based on: Price predictions 8/18: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK
Further Reading
Deepen your understanding with these related articles:
- Bitcoin Steadies at $118K as Analysts Flag Deeper Pullback Risks and Altcoin Rotation
- Bitcoin $115K Bets in Demand as Downside Fear Grips Market Ahead of U.S. CPI Report
- Bitcoin ‘ugly daily candle’ may signal drop below $117K: Trader
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
