Bitcoin Range Break Brewing, Which Altcoins Will Follow?

Key points:

Bitcoin’s tightening range trading signals a possible range expansion in the next few days.

Select altcoins also face selling pressure, but remain above their near-term support levels.

Bitcoin (BTC) continues to sell off at the $120,000 level, but the repeated retest of a resistance level tends to weaken it. If buyers do not cede much ground to the bears, it improves the prospects of BTC hitting a new all-time high above $123,218.

Fundstrat head of research Tom Lee said in an interview with CNBC that BTC could soar to $200,000 to $250,000 over the next few months. At that price, Lee believes BTC would be valued at 25% of the size of the gold market.

Crypto market data daily view. Source: Coin360

BTC’s consolidation seems to have driven investors into Ether (ETH), which is charging higher. Spot ETH exchange-traded funds have recorded a 16-day inflow streak, boosting the cumulative net inflows from $4.25 billion on July 2 to $9.33 billion on Friday.

Could BTC break above the overhead resistance, or will it remain in a range? Could select altcoins continue their strong run? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

S&P 500 Index price prediction

The S&P 500 Index (SPX) continued its march toward the target objective of 6,500, indicating sustained demand at higher levels.

SPX daily chart. Source: Cointelegraph/TradingView

The upsloping moving averages signal that bulls remain in control, but the overbought level on the relative strength index (RSI) suggests the rally may be getting overheated. That increases the risk of possible consolidation or correction in the near term.

If the price turns down but bounces off the 20-day simple moving average (6,283), it indicates that the sentiment remains positive. That increases the likelihood of a rally to 6,500. Sellers will have to yank the price below the 50-day SMA (6,099) to gain the upper hand.