Bitcoin is losing momentum: technical signals indicate a possible correction
Date: 2025-07-29 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Currently, Bitcoin continues to trade in a narrow range around $120,000, showing signs of weakness in the bullish trend. According to Deribit, there is a positive gamma among market makers near the strikes of $120,000 and $120,500, which indicates increased activity in the strategy of buying on the fall and selling on the rise. Such trading helps reduce market volatility.
The key support level is in the range of $116,000–117,000. If it is broken, a rollback to the May lows below $112,000 may follow. However, if Bitcoin manages to consolidate above $120,000, it may reach new historical highs. However, on the daily chart, the three-line breakout indicator is already indicating a weakening of the upward momentum. According to CoinGecko, Bitcoin is trading at $118,556, up 0.3% in a day.
As for Ethereum, the second-largest cryptocurrency briefly reached a seven-month peak of $3,937, but quickly corrected to $3,880. The RSI index did not confirm the maximum, signaling a bearish divergence. Similarly, the MACD on the daily chart is forming a signal for a reversal down. On-chain indicators, including fees and network revenue, are also lagging behind the growth of the rate. The $3,510 level remains significant support, while resistance is concentrated in the $3,900-4,100 area. The current price of Ethereum is $3,843, which is 0.8% higher than a day ago.
XRP is also showing signs of a correction. The token failed to overcome the resistance at $3.35 and started to decline. On the hourly chart, the RSI indicator broke the uptrend line, and the MACD dropped below zero. This may indicate a trend change and the possibility of a repeat test of the $2.96 minimum recorded on July 24. On the weekly chart, there is a tweezers reversal pattern. XRP is trading at $3.19, having added only 0.1% in a day.
Solana, on the contrary, recovered above the Ichimoku cloud on the hourly timeframe, which may mean a resumption of the upward movement with the potential to return to $200. However, on the daily chart, the tweezers reversal pattern is still active in the $205–206 region. If it falls below $184, an accelerated decline to the 200-day moving average in the $163 region is possible. At the time of publication, Solana is worth $189.18, having added 1.7% in the last 24 hours.
Meanwhile, TD Cowen analysts believe that Bitcoin has a chance to reach $155,000 by the end of 2025. In turn, Fairlead Strategies experts predict growth to $135,000 with a subsequent correction.
