Bitcoin is once again under pressure as weakening technicals and on-chain fatigue weigh on the market, with signs of capital rotation into altcoins adding to the strain on the leading cryptocurrency.
On Monday, Bitcoin slipped below the $113,000 level, stirring fresh concerns across the crypto space. Market data from crypto.news shows the asset trading at $112,909 at press time, down about 2.5% on the day. The drop marks a sharp pullback from its recent peak near $118,000, extending weekly losses to around 3% and underscoring the rising volatility and uncertainty surrounding Bitcoin.
Bitcoin struggles as technicals weaken and on-chain fatigue mounts
Bitcoin has struggled to maintain upward momentum over the past week. Persistent resistance and waning buying pressure have pushed the price lower, now erasing gains to levels last seen over a week ago.
Technical indicators point to bearish sentiment
Market indicators signal caution. Bitcoin’s Relative Strength Index (RSI) has fallen to 45.57, showing declining momentum, while the MACD has turned downward, reflecting weakening buying pressure. Futures activity has surged 137.2% to $72.97 billion, highlighting heightened speculative trading as investors attempt to profit from volatility.
On-chain metrics further underscore the bearish outlook. CryptoQuant researcher Joao Wedson points to signs of cycle exhaustion. According to Wedson, Bitcoin’s SOPR (Spent Output Profit Ratio) Trend Signal indicates that profitability is drying up. He warns that current accumulation is unprecedented, with many investors buying BTC at historically high prices rather than during earlier, more favorable periods.
Wedson also highlights the Short-Term Holder Realized Price, currently at $111,400, as a key reference point, particularly for institutions that missed earlier accumulation phases. He adds that the Sharpe Ratio—a measure of risk-adjusted returns—has weakened compared to 2024, reducing Bitcoin’s appeal to large institutional players.
A decline in social interest around BTC further fuels bearish sentiment. Wedson notes that altcoins are likely to capture more attention, with the market potentially rotating out of Bitcoin and into altcoins using reserves built during prior rallies.
“We are in an Altcoin Season, and that’s where your attention should be,” he said.
Altcoins face pressure despite rotation narrative
Despite Wedson’s optimism about altcoins, market signals suggest a more cautious picture. The Altcoin Season Index, which surged to 78 last week, has fallen to 64, signaling cooling sentiment.
Price action among major altcoins mirrors Bitcoin’s decline. Ethereum has dropped 7.23% over the past 24 hours, trading at $4,158.99, while XRP is down roughly 7.25% to $2.79. BNB has dipped 5.09% to $1,014, Solana is down nearly 8%, and Dogecoin has posted losses exceeding 11%. Other major assets, including Cardano, have also seen significant declines.
Market caution is further reflected in the Crypto Fear and Greed Index, which currently reads 47, placing it in neutral territory but edging toward fear. For now, both Bitcoin and the broader altcoin market remain under pressure as traders await clearer signals before making significant moves.
