Bitcoin May Enter Wave 2 Relief Rally Toward $118K–$122K as Altcoins Like XRP and CRO Signal Breakouts

• Bitcoin Wave 2 targets $118K–$122K

• Altcoin market cap breakout confirms bullish impulsive structure—current cap ~ $1.55 trillion

• XRP nears breakout above $3.08; CRO reclaimed resistance above $0.32 with rising volume

Meta description: Bitcoin Wave 2 relief rally targets $118K–$122K; altcoins like XRP and CRO show breakout setups. Read COINOTAG’s analysis and key takeaways now.

What is Bitcoin Wave 2 and where is resistance?

Bitcoin Wave 2 is a corrective relief rally expected after a Wave 1 sell-off, with primary resistance at the 0.618 Fibonacci near $118,463 and additional resistance between $121,000–$122,000. The relief rally must stay below the all-time high to keep the corrective count valid.

How strong is the altcoin market breakout?

The altcoin market cap (excluding Bitcoin) has broken a descending broadening wedge that formed from 2021–2023 and shows weekly bullish confirmation. Current altcoin market cap is approximately $1.55 trillion, with strong weekly candles indicating momentum that supports a second impulsive wave similar to past cycles.

Bitcoin enters Wave 2 relief rally with resistance ahead, while altcoins like XRP and CRO signal breakouts as the altcoin market structure shifts bullish.

• Bitcoin is entering a Wave 2 relief bounce, targeting resistance zones at $118K–$122K without breaking the previous all-time high.
• The altcoin market cap chart confirms a breakout from a broadening wedge, signaling the start of a bullish impulsive Wave 2.
• XRP and CRO are showing bullish setups, with XRP nearing breakout confirmation and CRO exceeding past resistance above $0.32.

Bitcoin is currently in a corrective phase, with analysts observing a potential Wave 2 relief bounce before deeper downside pressure emerges. The broader altcoin market, however, is showing strong signs of continuation with bullish structures in place.

Why does Bitcoin face resistance near $118K–$122K?

Technical tools place primary resistance at the 0.618 Fibonacci (~$118,463), with extended resistance between $121,000–$122,000 at 0.786–0.854 retracements. The relief rally must not exceed the all-time high; exceeding it would invalidate the current corrective count and change the outlook.

According to analysis from market observers, Bitcoin appears to have completed Wave 1 of a macro ABC correction from the all-time high. A local low near $108,000 aligned with the macro 0.118 retracement, increasing the probability that the initial leg of the correction is complete.

Wave 2 is now expected to unfold as a relief rally. Bitcoin currently trades near $108,226 after a recent daily drop. Price activity has shifted from accumulation to breakout phases, with the current consolidation range near $99,500–$119,000.

How does the altcoin market structure compare to past cycles?

The altcoin market cap chart mirrors historical cycles from 2014–2018, showing two impulsive waves separated by a mid-cycle correction. The descending broadening wedge formed from 2021–2023 broke out in 2024, which marked the start of a renewed bullish phase and supports the thesis of a second impulsive wave.

The altcoin market cap is currently near $1.55 trillion, with solid weekly bullish candles signaling growing upward momentum. Technical setups point to a second impulsive wave closely following past macro patterns.

Which altcoins are showing the strongest setups?

XRP remains in a tightening consolidation with an apex around $2.99. A breakout and backtest above $3.08 would validate continuation. CRO has shown strong upside after reclaiming resistance above $0.32, supported by higher volume and momentum readings since mid-2025.

Frequently Asked Questions

Will Bitcoin’s Wave 2 exceed the all-time high?

That outcome would invalidate the current corrective count. For now, analysts expect Wave 2 to remain below the all-time high and then resolve into a deeper corrective leg, but price confirmation is required at each resistance level.

How should traders approach altcoin breakouts?

Look for a clear breakout with follow-through volume and a successful backtest. Prioritize risk management and watch macro altcoin market cap for confirmation of impulsive continuation.

Key Takeaways

• Wave 2 target zone: Watch $118K–$122K (0.618–0.854 Fibonacci) as the primary resistance band.
• Altcoin momentum: Market cap breakout near $1.55T supports bullish continuation and potential leadership from select alts.
• Trading cues: Validate XRP > $3.08 and CRO > $0.32 with volume and backtests before adding exposure.

Conclusion

Bitcoin’s current price action suggests a Wave 2 relief rally toward $118K–$122K, while the altcoin market displays breakout characteristics that could lead the next phase of market strength. Monitor Fibonacci resistances, altcoin market cap trends, and breakout confirmations on XRP and CRO to align positioning. For continued coverage and updates, see COINOTAG analysis and market summaries.

Publication date: 2025-08-29 • Updated: 2025-08-29