Bitcoin’s price action has turned somewhat sluggish after its unprecedented climb to a new all-time high of $122,838 on July 14. The rapid push to that level was preceded by a week of frenzied trading and heavy inflows, with BTC breaking through multiple resistance zones in quick succession. However, once that peak was hit, a series of volatile intraday movements followed to give a pullback to $116,000 and Bitcoin is now back to trading between the $117,000 and $118,500 price zone.

Related Reading

A notable bearish call came from crypto analyst Melikatrader94, who posted a technical breakdown on the TradingView platform that might send Bitcoin down to $113,000.

QML Zone Rejection Points To Downtrend Toward $113,600

According to the hourly candlestick chart shared by Melikatrader94, Bitcoin is currently exhibiting a Quasimodo Level (QML) structure. The Quasimodo Level (QML) structure is characterized by three peaks in a bearish scenario or three troughs in a bullish scenario, with the middle one being the most prominent, identifying the price. The post predicted that Bitcoin’s entry into the $119,000–$121,000 zone would draw sellers, and this was indeed the case. 

The quick rejection after its all-time high confirms a bearish shift in structure, and now the momentum is tilted to the downside. This rejection came after a significant price move that engulfed a previous structural support level.

“BTC rejected from QML zone and the selloff confirms bears are active,” the analyst noted. 

The bearish outlook remains valid as long as Bitcoin stays below the QML zone, with the next critical support level situated at $113,600. This area could serve as a potential point for either a bounce or short-term consolidation if the price continues downward. However, a pullback is likely to occur around $116,000 before Bitcoin falls to $113,600.

Altcoins Under Threat As BTC Price Weakens

The potential Bitcoin crash to the $113,000 region could have serious implications for many altcoins that are already starting to post massive gains. However, these altcoins, which often follow Bitcoin’s lead, are already showing signs of nervousness as BTC struggles to maintain upward momentum. 

Among the notable movers, XRP finally broke its eight-year-old resistance to hit a new all-time high of $3.65. However, the rally appears to be stalling, with the token now showing early signs of a correction around the $3.45 zone. Ethereum, which also surged on the back of Bitcoin’s push to $122,000, climbed above $3,600 for the first time in months but has since settled into a consolidation phase just below $3,500.

Related Reading

Should the leading cryptocurrency break below $116,000 in the coming days, it may cause a cascade of outflows from altcoins and lead to increased selling pressure across the board. However, we could see these major altcoins finally detach from Bitcoin’s movement. This would lead to an altcoin season where major altcoins outperform Bitcoin for some time.

Featured image from Pixabay, chart from TradingView

Solana (SOL) has struggled to maintain momentum after a rally that saw it peak around the $183 level on May 14. Since then, Solana’s price action on the 4-hour chart hasn’t given a clear direction, with the cryptocurrency pulling back to retest a key support zone near $166. 

Related Reading

At the time of writing, Solana is trading around $169.43, up slightly by 0.70% on the day, as it attempts to defend this crucial support level and build a foundation for another upward move. Interestingly, a technical outlook on the TradingView platform has pointed to the paths Solana might take in the coming days.

$166 Support Holds Repeated Tests, Break Above $177 Or $183 Will Be Bullish

According to a recent analysis posted by TradeCityPro on TradingView, the $166.82 level is serving as a key short-term pivot for Solana. After a bullish leg that began at $142.25 and extended to $177.51, the asset experienced a fake breakout attempt beyond that resistance and was swiftly rejected at $183.86.

This rejection brought the price back below $177.51 and into a retest of the $166.82 region. Notably, this support level has been tested twice so far and has held firm. The 4-hour chart is showing strong bullish candles forming around $166, which is an indication of a strong buying interest at this price level.

Keeping this in mind, a breakout above either the $177.51 or $183.86 resistance would be the go ahead for a long position, especially if accompanied by the formation of a higher low and higher high beforehand.

Until such a breakout occurs, the current setup is one of indecision. A successful breach and daily close above $177 backed by rising volume would likely set the stage for another move toward the $190 to $200 region for Solana.

Chart Image From TradingView

Short Trade Also Valid Below $166 Support Zone

Market volume, however, has declined from last week’s levels. At the time of writing, Solana’s 24-hour trading volume is $2.3 billion, a 36.15% decrease from the previous 24-hour timeframe. As such, a new wave of momentum will be required to drive Solana through the resistance levels at $177 and $183.

For now, the Solana price is consolidating tightly above $166, and failure to hold this level could open the door for a retest of the deeper $142.25 support.

Related Reading

If bears gain control and push the price lower, the next significant demand zone lies back at $142.25, which is the origin point of the previous bullish move. Given how the price reacted from this level earlier on April 30 and on May 6, it is expected to act as a strong support again if tested.

At the time of writing, Solana is trading at $171. up by 1.6% in the past 24 hours.

Featured image from Unsplash, chart from TradingView

Market indicators reveal a tug of war between buyers and sellers, with the bear aiming to make profits and cause a reversal. If the Bulls can build enough momentum, SUI can overcome this hurdle and set the stage for ongoing gatherings. However, if the resistance turns out to be too strong, the denial may force a retrace to lower the support zone.

Can Sui maintain that momentum?

SUI currently faces significant levels of resistance, and its ability to maintain upward movement determines the next move. The Bulls managed to push the price towards $2.365, but the key test lies in whether the purchase pressure is strong enough to break past resistance.

SUI prices are below the 100-day SMA, but signs of a potential change in momentum are emerging. MACD is on a bullish crossover crisis, indicating that purchasing pressure may be building up. A crossover is seen that could show a stronger upward trend, increasing the likelihood that SUI will break through key resistance levels.

If the Bulls can successfully drive prices above the $2.365 resistance level, they can signal a strong breakout and open the door for even more up. A critical move beyond this level supported by increasing shopping interest could push the SUI into the next zone of resistance at $2.8217.

However, sustained amounts and additional bullish confirmations are important for a rally to gain traction. If momentum weakens, the SUI will struggle to maintain an upward push, which could lead to another retest with a lower level of support.

Risk of Rejection: Can a bear regain control?

Resistance zones often cause an increase in volatility as both the Bulls and the Bears fight for control. Because buyers are unable to maintain strength, SUI may struggle to retain recent profits, leading to price rejection to key support areas.

The initial primary support to monitor is close to the $1.5997 level, with buyers likely intervening to prevent losses. Soaking under this level allows you to open the door for a deeper correction to the $1.4222 psychological support, a key zone that previously served as a price range.

If sales pressure is increased, SUI can test low support, near $1.1689. This indicates a stronger bearish shift. The Bulls must defend these levels to maintain a broader uptrend or endanger the long-term integration phase before another attempt at recovery.