Bitcoin falls below $106K weighing under resistance, HFT, SOLX, MAV leads altcoins

Bitcoin continued its weakness on Tuesday as the leading cryptocurrency in the world by market capitalisation weighed under the resistance zone of $108k. The broader cryptomarket was down 1.59% to $3.27 trillion on Tuesday. The Coin Market Cap crypto fear and greed index is still in neutral territory at 50 from 52 yesterday, showing signs of fatigue in the crypto market. What’s with Bitcoin Bitcoin was down 1.33% to $106,177.46 on Tuesday. The US financial markets were also down on Tuesday as US President Donald Trump’s new spending bill, The Big Beautiful bill which was narrowly passed by the US Senate. The markets were cautious on the $3.3 trillion tax cut bill, which is poised to add to the US’s mounting fiscal deficit. Bitcoin has recently consolidated below a significant resistance level near $108,350. This price point aligns with the upper boundary of its current trading range. Despite attempts to move higher, the price has remained capped at this level. Technical indicators suggest a potential bearish divergence, which may indicate a reduction in the upward momentum of the recent rally. Should selling pressure increase at this level, the price could revert towards the lower boundary of the trading range, approximately $100,960. Price action and resistance Bitcoin’s inability to sustain a move above $108,350 has resulted in the formation of a potential lower high. This development aligns with a bearish price structure that has been observed over the past several weeks. The $108,350 level has demonstrated itself to be a notable barrier, with multiple price rejections confirming it as an area where supply has been dominant. Without a decisive breakthrough above this level, the price is more likely to continue trading within its established range. Technical indicators and volume trends A bearish divergence has been noted, characterized by a slight increase in price while the Relative Strength Index (RSI) shows weakening momentum. This pattern is often considered an early indication of potential exhaustion in a rally, particularly when it occurs at a key resistance level. Such a divergence suggests that the recent upward movement may have been driven more by short-term factors than by sustained buying interest. Furthermore, trading volume has shown a consistent decline during this period of consolidation. In the context of established technical resistance and the developing divergence, this diminishing volume could reinforce a bearish outlook. For a significant upward breakout to occur, a corresponding increase in volume would typically be required to confirm a shift in demand. Without such confirmation, the price may be more likely to decline and test subsequent support levels, including the point of control and potentially the value area low at $100,960. Current data points indicate Bitcoin is encountering resistance at approximately $107,565, aligning with a pivot point, and also at the 23.6% Fibonacci level around $107,664. The emergence of a bearish divergence is further supported by the Relative Strength Index (RSI) at 54.4, which, while neutral, shows a downtrend from 56.1 yesterday. Concurrently, the Moving Average Convergence Divergence (MACD) histogram, at +269, suggests that bullish momentum may be decelerating despite remaining positive. Strategy’s faith in Bitcoin being tested? Another event that shook some confidence for Bitcoin holders is that Microstrategy, one of the strongest corporate backers of Bitcoin, transferred $796 million worth of BTC to three new wallets. Blockchain analysis platform Lookonchain said 7382 BTC was transferred on Sunday, but no official explanation has been given. The question that arises in the mind of BTC investors is whether Michael Saylor, who has been a strong advocate of BTC, has now started selling his positions. Microstrategy remains the largest corporate holder of Bitcoin with holdings of 592,345 BTC, equivalent to about $64.28 billion. Altcoins The altcoin market capitalization fell to $1.29 trillion from $1.32 trillion in the previous day. CoinMarketCap’s altcoin season index fell from 21 yesterday to 20 today, deeply affirming the strength of the Bitcoin season. Ethereum fell by 2.20% to $2,430.75 at the time of writing. Solaxy (SOLX), Hashflow (HFT), and Maverick Protocol (MAV) were the top gainers. SOLX rallied by 77%, HFT popped 40% while MAV gained 14%. Solaxy, which was listed on Uniswap on June 24, had a strong start, but faltered after that. The layer 2 network on the Solana chain exhibited strong movement on Tuesday. Hashflow gained due to its Solana integration and Binance listing, which boosted its accessibility and credibility. The post Bitcoin falls below $106K weighing under resistance, HFT, SOLX, MAV leads altcoins appeared first on Invezz

Source: Invezz