Bitcoin’s price is back under pressure, with fading technical momentum and signs of on-chain fatigue weighing heavily on the world’s largest cryptocurrency. The drop comes as traders eye a potential rotation into altcoins though even that narrative is showing cracks.
Bitcoin Dips as Momentum Weakens
On Monday, Bitcoin slipped under the $113,000 mark, falling 2.5% on the day to trade at $112,909 at press time. The move puts BTC about 3% lower over the past week, a sharp pullback from its recent high near $118,000 and a reminder of how fragile market sentiment remains.
Technical indicators aren’t offering much comfort. Bitcoin’s Relative Strength Index (RSI) is sitting at 45.57, reflecting weakening momentum, while the MACD has flipped bearish. Futures volume has spiked 137% to nearly $73 billion, suggesting heightened speculative trading as volatility grows.
On-Chain Data Signals Exhaustion
On-chain metrics paint a cautious picture too. Research from CryptoQuant’s Joao Wedson suggests Bitcoin is showing signs of cycle fatigue. The SOPR (Spent Output Profit Ratio) indicates profitability is fading, while the current accumulation pattern looks unusual many investors are buying in at historically high levels instead of earlier, more favorable prices.
Wedson also points out that the Short-Term Holder Realized Price now around $111,400 has become a key line to watch, especially for institutions that missed the lower entry points. Meanwhile, Bitcoin’s Sharpe Ratio, a measure of risk-adjusted returns, has slipped compared to 2024, making the asset less attractive to big institutional buyers.
Adding to the caution, social interest in Bitcoin is cooling off. “We are in an Altcoin Season, and that’s where your attention should be,” Wedson argued, though the numbers suggest otherwise.
Altcoins Struggle to Hold Ground
Despite the buzz about a possible shift into altcoins, the so-called Altcoin Season Index has cooled off, dropping from 78 last week to 64. That decline hints that enthusiasm for alts may already be fading.
Price action supports that view. Ethereum has plunged more than 7% to $4,158, while XRP is down over 7% at $2.79. BNB, which recently showed strength, has lost about 5% to trade near $1,014. Solana is down nearly 8%, Dogecoin has shed over 11%, and Cardano and TRON are also firmly in the red.
Market Sentiment Edges Toward Fear
The broader market mood isn’t helping. The Crypto Fear and Greed Index currently stands at 47 technically “Neutral” but leaning closer to fear.
For now, both Bitcoin and altcoins are struggling to find footing, with weak technicals, fading institutional appetite, and waning public interest shaping a cautious outlook. Traders may be hoping for an altcoin revival, but the market is telling a more sobering story.
