Bitcoin’s recent price action has been a bit of a rollercoaster. After hitting a record high of $122,838 on July 14th, things have cooled off considerably.
Bitcoin’s Technical Breakdown
One analyst, Melikatrader94, sees trouble brewing. Using a technical analysis chart, they’ve pointed out a “Quasimodo Level” (QML) structure. Basically, this means the chart shows three peaks, suggesting a bearish trend. The analyst believes Bitcoin’s rejection from the $119,000-$121,000 zone confirms this bearish outlook.
They predict Bitcoin could drop to $113,600. There might be a slight bounce around $116,000 before that happens, but the overall trend is down as long as Bitcoin stays below the QML zone.
Altcoins Feeling the Heat
This potential Bitcoin crash could seriously impact altcoins. Many altcoins, which often follow Bitcoin’s price movements, are already showing signs of weakness.
For example, XRP recently hit a new all-time high but is now correcting. Ethereum also saw a surge but is consolidating. If Bitcoin falls below $116,000, we could see a widespread altcoin sell-off.
However, there’s a chance altcoins could finally break free from Bitcoin’s influence, leading to an “altcoin season” where they outperform Bitcoin.
