Bitcoin Trades in Tight Triangle Near $118K as Altcoins Show Potential for Rally

Key Points

1. Bitcoin's price is consolidating between strong support near $116,000 and resistance around $123,000, signaling potential for a breakout in either direction.

2. A breakout above $123,000 could push Bitcoin toward $125,000, while a drop below $116,000 might trigger a correction to $111,000.

3. The TOTAL2 index, which excludes Bitcoin's market cap, is nearing historic highs, suggesting altcoins are poised for a rally.

4. Historical cycles, such as those in 2016 and 2020, indicate that the current re-accumulation phase in altcoins may precede significant gains.

5. Market dynamics, including Bitcoin ETF inflows and whale transactions, continue to influence cryptocurrency prices and investor sentiment.