Bitcoin Surges Past $118,000, Potentially Boosting ETH and Select Altcoins Toward New Highs

  • Bitcoin’s surge past $118,000 has ignited fresh momentum across key altcoins including ETH, HYPE, UNI, and SEI, signaling a robust bullish phase in the crypto market.

  • Institutional interest is notably increasing, with US spot Bitcoin ETFs recording significant inflows, underscoring confidence in Bitcoin’s sustained upward trajectory.

  • Market analyst Axel Adler Jr highlights that Bitcoin’s Market Value to Realized Value (MVRV) ratio nearing 2.75 could mark the onset of distribution, potentially capping gains near $130,900.

Bitcoin’s breakout above $118K fuels altcoin rallies; institutional inflows and technical patterns suggest potential for continued growth amid cautious profit-taking signals.

Bitcoin Breaks Key Resistance, Setting Stage for Potential Rally to $150,000

Bitcoin (BTC) has demonstrated strong bullish momentum by surpassing the $118,000 mark, completing a classic inverse head-and-shoulders pattern. This technical formation, confirmed by a decisive break above the neckline, suggests a potential extension toward the $150,000 target. The critical support level to watch remains the neckline near $110,530; a successful retest here would reinforce bullish sentiment and validate the breakout.

However, traders should remain vigilant as the 4-hour relative strength index (RSI) indicates overbought conditions, which may prompt short-term consolidation or minor corrections. A sustained close below the neckline or the 50-day simple moving average at approximately $106,981 could signal a shift in momentum, inviting profit-taking and increased bearish pressure.

Institutional Inflows and Market Sentiment Bolster Bitcoin’s Uptrend

Recent data reveals that US spot Bitcoin ETFs attracted $1.17 billion in inflows, marking the second-largest daily increase on record. This surge in institutional capital underscores growing confidence among large-scale investors in Bitcoin’s near-term prospects. Additionally, the liquidation of $570 million in short positions indicates a strong short squeeze, further propelling prices upward. These factors collectively enhance the bullish narrative, suggesting that Bitcoin’s rally may sustain momentum if key support levels hold firm.

Ethereum’s Ascendancy Continues Amid Overbought Signals

Ethereum (ETH) has rallied impressively, breaking above the $2,879 resistance and approaching the $3,153 level. The 20-day exponential moving average (EMA) is trending upwards, and the RSI remains in overbought territory, reflecting robust buying pressure. Should ETH surpass $3,153, it could target $3,400 and potentially $3,750, signaling strong bullish continuation.

Support levels at $2,879 and $2,733 are critical for maintaining this momentum. A dip below $2,733 may trap aggressive bulls and trigger short-term profit-taking. Nonetheless, minor pullbacks are likely to be seen as buying opportunities, reinforcing the positive outlook for Ethereum.

Short-Term Consolidation Likely as Buyers Defend Key Support

The 4-hour chart RSI suggests a possible short-term correction or consolidation phase. A retracement to $2,879 could provide a crucial entry point for buyers aiming to sustain the upward trend. Failure to hold this support might lead to a decline toward the 20-day EMA, where renewed buying interest could emerge. Traders should monitor these levels closely to gauge the strength of Ethereum’s rally.

Altcoins HYPE, UNI, and SEI Show Promising Technical Setups

Hyperliquid (HYPE) has gained momentum after rebounding from the 50-day SMA and breaking above the 20-day EMA, with the RSI nearing overbought levels. A sustained move above $45.80 would invalidate bearish head-and-shoulders patterns and could propel HYPE toward $50 and $60 targets. Conversely, a drop below the 50-day SMA near $37.66 may signal a correction.

Uniswap (UNI) continues its uptrend, forming higher highs and lows. A breakout above $8.64 opens the path to $10.36 and potentially $13, provided the price does not fall below the 50-day SMA at $7. The 4-hour chart confirms bullish momentum, although sellers may attempt to test support at the 20-EMA.

Sei (SEI) has surged from the 20-day EMA to challenge resistance at $0.34. A close above this level could initiate a rally toward $0.44. Support at $0.29 and $0.31 remains pivotal for maintaining bullish sentiment, while a break below the 20-day EMA might lead to consolidation within the $0.24 to $0.34 range.

Technical Indicators Suggest Cautious Optimism for Altcoins

Across these altcoins, overbought RSI readings on shorter timeframes indicate potential for brief pullbacks or sideways movement. However, the prevailing trend remains positive as long as key support levels hold. Traders should consider these dynamics when planning entries or exits, balancing the prospects of continued gains against the risk of short-term corrections.

Conclusion

Bitcoin’s breakout above $118,000 has catalyzed renewed strength in major altcoins, supported by robust institutional inflows and favorable technical patterns. While overbought indicators suggest possible short-term consolidation, the overall market structure points toward sustained bullish momentum. Key support levels across BTC, ETH, HYPE, UNI, and SEI will be critical in determining the trajectory of this rally. Investors and traders are advised to monitor these benchmarks closely and consider strategic positions that align with the evolving market conditions.

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