Cryptocurrencies: Altcoins plunge up to 4% as Bitcoin retreats to $107,000

Quick overview

Bitcoin (BTC) is down 1.5% to $107,853 after surpassing $110,500 last Thursday. While some traders anticipate a rebound above $112,000, growing selling pressure and liquidity sweeps suggest that recent breakouts may be false signals.

In this context, leading altcoins are also under pressure, with losses of up to 4%, led by Dogecoin (DOGE), which drops 4.3% to $0.1631. Ripple (XRP) slides 1.8%, while Solana (SOL) falls 2.6%.

BNB (BNB) edges down 0.8% to $653.31; Tron (TRX) loses 0.6% to $0.2833; and Cardano (ADA) plunges 3.2% to $0.5721, despite posting a 4.0% gain earlier in the week.

Bitcoin: What Technical Analysis Is Saying

Bitcoin’s price rallied to $110,500 on Thursday, but the cryptocurrency is now facing resistance, with multiple bearish divergences flashing across several timeframes.

On the 15-minute, 1-hour, and 4-hour charts, technical analysts point to divergence signals—where price continues to rise while momentum indicators like the Relative Strength Index (RSI) are trending lower. This suggests weakening bullish momentum and increases the risk of a short-term pullback.

Technical Analysis Data

Zooming out to the daily chart reinforces a cautious outlook. In May, a clear bearish divergence emerged between price and momentum indicators, aligning with Bitcoin’s all-time high near $111,800. While BTC briefly dipped below $100,000 since then, the divergence remains intact, indicating that underlying bearish pressure may still be in play. The immediate downside target lies between $107,500 and $106,000.

This bearish bias was reinforced by Friday’s stronger-than-expected U.S. nonfarm payrolls (NFP) data. Although the jobs report initially helped BTC push toward $110,000, bulls failed to sustain the breakout. Rejection at this key psychological level could signal exhaustion at the top of the current range.

Interestingly, funding rates remain neutral. The funding rate for perpetual futures is flat, even as BTC hovers near its historical highs. This lack of aggressive long positioning suggests traders are not fully convinced of a sustained breakout, aligning with the current technical divergences.

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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