Bitcoin Test Support As BNB, SOL, LINK, AAVE Prep For Higher

Key point:

• Bitcoin’s bounce off the moving averages may improve sentiment, pushing BNB, SOL, LINK and AAVE above their overhead resistance levels.

Bitcoin’s (BTC) failure to close above $110,000 may have attracted profit-booking by short-term traders. That has pulled the price near $108,000. Crypto analyst Daan Crypto Trades said in a post on X that a close above $110,000 would be good for Bitcoin, but a drop below $108,000 could deepen the correction.

Some analysts are betting that US President Donald Trump’s “Big Beautiful Bill” will act as a catalyst to push the price above the all-time high. Prediction service Kalshi expects the US national debt to reach $40 trillion in 2025, a massive increase from $23.2 trillion in 2020. History shows that US borrowing increases have boosted Bitcoin’s price. For example, Bitcoin price soared by roughly 38% after Trump signed a COVID-19 spending bill in late 2020. 

Although most analysts are bullish on the continuation of the bull market, crypto analyst Rekt Capital cautioned in a recent video that the bull market may only run for two or three more months if Bitcoin follows the 2020 pattern. 

Could Bitcoin bounce off the support, pulling select altcoins higher? Let’s analyze the charts of the top five cryptocurrencies that look strong on the charts.

Bitcoin price prediction

Buyers tried to push Bitcoin above the $110,500 resistance on Thursday, but the bears held their ground.

Sellers have pulled the price back below the downtrend line, which is a negative sign. Buyers are expected to fiercely defend the moving averages because if they fail in their endeavor, the BTC/USDT pair could slump to $105,000 and later to psychological support at $100,000.

Instead, if the price rebounds sharply from the moving averages, it suggests a positive sentiment. That improves the likelihood of a rally to the all-time high at $111,980 and then to the neckline of the inverse head-and-shoulders pattern near $113,500.

The pair has dipped to the 50-simple moving average (SMA) on the four-hour chart, where the bulls are trying to arrest the pullback. If the price turns up from the current level and breaks above the downtrend line, it signals demand at lower levels. The bulls will again try to shove the pair above $110,500. If they do that, the possibility of a rally to $113,500…