Bitcoin is cooling off as altcoins steal the spotlight. Is a BTC correction on the horizon, or will the next leg up arrive soon?
Bitcoin Pauses as Altcoins Surge
Bitcoin (BTC) kicks off the final full week of July in consolidation mode, hovering around $119,000 after reaching all-time highs near $123,000. The excitement is shifting fast to altcoins, triggering growing chatter that “altseason” is officially underway.
While some traders still eye a $150,000 target for the cycle peak, increasing Bitcoin exchange reserves and potential CME futures gaps are raising short-term concerns.
BTC Correction Looms Around $114K–$116K Zone
Bitcoin showed classic volatility into the weekly close, dipping toward $116,000 before bouncing back. Analysts noted the quick closure of a CME gap — a recurring Monday pattern seen for six straight weeks.
But traders are watching for a deeper correction. A CME gap near $114,000 and a liquidation cluster around $115,300 are in focus. If BTC fails to push higher, a sharp drop into this zone could trigger more downside movement.
Market watchers like CrypNuevo highlighted warning signs such as long upper wicks without progress — often interpreted as market makers preparing to short.
Bitcoin Price Predictions Cool Off — For Now
BTC price forecasts remain bullish overall, but short-term expectations are more conservative.
Trader BitBull sees $130,000 as the next likely stop before a potential Q4 peak above $160,000. Other long-term targets include $137,000 (Aksel Kibar) and $145,000 (BitQuant). Meanwhile, July predictions on Kalshi place the average target at $124,000.
The consolidation phase, according to many analysts, is healthy and allows altcoins room to run.
Fed’s Powell Returns to Spotlight Amid Interest Rate Uncertainty
Markets are also watching macroeconomic signals this week. Federal Reserve Chair Jerome Powell is scheduled to speak Tuesday in Washington, D.C., as pressure mounts over stalled interest rate cuts.
Despite mounting political criticism, Powell has held a firm stance. The CME FedWatch Tool shows less than a 5% chance of a rate cut at the July 30 FOMC meeting. Mixed inflation data and strong economic reports are clouding expectations for looser monetary policy — a potential drag on risk assets like Bitcoin and altcoins.
Altseason Ignites as Bitcoin Dominance Drops
As Bitcoin consolidates, altcoins are taking center stage. Ethereum (ETH), XRP, and others led gains last week, accelerating the shift into what’s widely called “altseason.”
BTC dominance — the measure of Bitcoin’s market share in the total crypto market cap — dropped from 66% to nearly 60% in just one week. This is the sharpest drop in years and a clear sign that traders are rotating into altcoins.
“Altseason is here,” declared Swissblock’s Henrik Zeberg. Others, like Michaël van de Poppe, expect short-term volatility but remain bullish on altcoins for the next six months.
Bitcoin Exchange Reserves and Whale Activity Raise Red Flags
On-chain data is showing a rise in Bitcoin reserves on centralized exchanges, suggesting increased profit-taking. According to CryptoQuant, this trend could signal weakening buy-side momentum and an upcoming correction.
Whale inflows are also being closely tracked. While not yet at levels seen during previous local tops, rising exchange activity from large wallets could hint at a shift in market behavior.
Historically, whale inflows above $75 billion have preceded correction phases — something to monitor closely if BTC fails to break higher soon.
Key Takeaways
- Bitcoin price remains in consolidation, with strong resistance around $123K and support near $114K.
- Traders are cautious due to liquidation risks and CME gap patterns.
- Altcoins are rallying as BTC dominance declines sharply.
- Fed Chair Powell’s upcoming remarks may influence risk asset sentiment.
- Rising BTC exchange reserves and whale inflows suggest caution ahead.
Altseason is heating up — but the crypto market isn’t done with Bitcoin just yet.
