Altseason Heats Up as Bitcoin Pauses — What to Watch This Week

Altseason Heats Up as Bitcoin Pauses — What to Watch This Week

Bitcoin Consolidates While Altcoins Surge: Is a Pullback Coming?

Bitcoin is entering the final stretch of July in a holding pattern, with its price hovering around $119,000 after a recent spike to $123,000. As attention shifts toward altcoins, investors are beginning to reassess their Bitcoin positions, with notable movements in exchange reserves, market dominance, and price targets.

Bitcoin’s Technicals Show Potential for a Correction

After a volatile weekend, BTC/USD briefly dipped to $116,000, only to rebound swiftly. Data from Cointelegraph Markets Pro and TradingView show repeated downward wicks that failed to deter bullish sentiment.

According to trader Daan Crypto Trades, Bitcoin closed its CME futures gap immediately after markets opened, marking the sixth straight week this has occurred.

Despite continued bullish momentum, technical analyst CrypNuevo warned of a possible downside trigger. He points to wicks forming on the daily chart without upward price movement—an indication of market makers placing short positions. Liquidation data also shows a major cluster at $115,300, suggesting that level could be tested soon.

Additionally, another CME gap near $114,000 looms as a possible target if downward momentum accelerates.

Analysts Temper Bitcoin Price Forecasts

Short-term expectations are cooling. Trader BitBull predicts Bitcoin will surpass $130,000 in the next few weeks, but sees the cycle top forming near $160,000 in Q4.

Meanwhile, other long-term projections include:

• Aksel Kibar: $137,000

• BitQuant: $145,000

• Kalshi crowd consensus: $124,000 for July

Jerome Powell to Speak as Rate Cut Odds Dwindle

Federal Reserve Chair Jerome Powell is set to speak Tuesday at the Integrated Review of the Capital Framework for Large Banks Conference in Washington, D.C. Despite calls from President Donald Trump for him to step down, Powell has remained firm on maintaining high interest rates.

According to the CME Group’s FedWatch Tool, the chance of a July rate cut is under 5%. Mosaic Asset notes the market is split between expecting no cut or a modest 0.25% cut in September.

Altseason Takes Center Stage

As Bitcoin cools, the altcoin market is roaring to life. Ether (ETH) and XRP led gains last week, triggering broader bullish momentum across the sector.

According to analyst Rekt Capital, Bitcoin’s sideways movement is encouraging capital rotation into altcoins. The clearest sign: Bitcoin dominance fell from 66% to nearly 60%, its lowest point since March.

“Altseason is here,” declared Swissblock’s chief macro economist Henrik Zeberg.

Trader Michaël van de Poppe cautioned that altcoins may face a short-term correction before continuing their upward trend. He remains bullish for the next six months.

BTC Exchange Reserves Rise — Is Profit-Taking Underway?

As Bitcoin stalls, exchange reserves are growing, reflecting a shift in investor sentiment. Data from CryptoQuant shows that centralized exchanges now hold more BTC than at any point since June 25, suggesting profit-taking is underway.

Additionally, large inflows from whale wallets have surged. Between July 14 and 18, the monthly average rose from $28 billion to $45 billion, though still far from the $75 billion inflows seen at previous cycle tops.