TL;DR
Since last Sunday, Bitcoin’s (BTC) bullish momentum has faced strong resistance. The digital asset failed to consolidate its gains after reaching a local high above $116,000 during Monday’s session, a level not seen since the October 10 crash.
Selling pressure intensified, causing Bitcoin’s price to fall from $116,000, slipping below the psychological support of $114,000 in the last few hours.
This correction ends a rally that was fueled by weekend optimism, including comments from US Secretary Bessent about a possible trade deal between Washington and Beijing. This momentum had helped BTC surpass $112,000 and $113,000.
However, the recent volatility is a continuation of the previous week. Bitcoin had risen from $108,000 to $114,000, only to correct sharply to $106,000, before US inflation (CPI) data helped stabilize the market near $111,000.
With the recent pullback, technical traders are now focusing their attention on a CME (Chicago Mercantile Exchange) futures “gap” that formed during the weekend market close. The upper boundary of this gap is located at approximately $113,500.
Historically, Bitcoin tends to “fill” these price gaps, suggesting that Bitcoin’s price could find its next temporary support or point of interest in that zone.
Meanwhile, the altcoin market presents a mixed picture. The main large-cap cryptocurrencies, such as Ethereum (ETH), BNB, Solana (SOL), and Dogecoin (DOGE), are recording slight daily losses, following Bitcoin’s lead.
However, several smaller-cap altcoins are showing impressive strength. HBAR is up 14% daily following positive news related to an EFT in the United States. TAO is also posting double-digit gains.
The most explosive movements come from FIGR_HELOC, rocketing by almost 40%, followed by TRUMP (+12%) and PUMP (+10%). In contrast, ZEC has plunged by 8%.
The total crypto market cap has felt the impact of BTC’s fall, losing around $50 billion since yesterday’s peak and standing at $3.950 trillion.
