Bitcoin Hits $118K, Bulls Target $120K as Altcoins and Meme Coins Rally
Bitcoin is holding strong around $118,000. This comes after it reached a new high of $111,999 during the U.S. session on Wednesday. The price move followed fresh hints from the Federal Reserve that rate cuts could happen later this year. That news gave traders across the crypto market more reason to take risks.
Breaking past $112,000 was a big deal. It was both a technical resistance point and a psychological barrier. Now, many analysts think this could lead to another strong upward leg for Bitcoin. That optimism is spreading to the rest of the market, too. A number of altcoins are now moving higher, breaking their resistance levels, often following Bitcoin’s lead.
Right now, Bitcoin (BTC) is trading close to $118,000. The overall mood in the market has been lifted since the Federal Open Market Committee (FOMC) minutes came out. The documents showed that some Fed members are in favor of cutting interest rates, possibly as early as July. But not everyone at the Fed agrees. Many are still worried about inflation, especially with trade policies from former President Donald Trump back in the news. His tariffs could drive prices up again.
Still, the Fed meeting minutes helped spark fresh buying. The BTC price reacted right away, breaking out of its recent range. Market analysts believe this is part of a wider move toward risk-on behavior, where investors feel more confident about buying riskier assets.
On-chain activity also points to some key shifts. Retail investors have been selling. Data from Santiment shows that smaller BTC wallets have dropped recently. This usually means that everyday traders are stepping away, possibly feeling nervous or uncertain. But that often sets the stage for bigger players to step in. History shows that when retail sentiment turns fearful, institutional investors tend to buy more.
At the institutional level, things look solid. SoSoValue data shows spot Bitcoin ETFs brought in $218 million in inflows on Wednesday alone. That makes four straight days of net positive inflows, starting from July 2. So far this month, institutional investors have poured in $1.18 billion. This extends a trend that began in April, showing that large investors still have confidence.
The derivatives market is also showing signs of strength. CoinGlass reports that BTC open interest (OI) rose by 8.07% over the last 24 hours. It’s now at $79.45 billion. That’s not far from the all-time high of $81.09 billion, which we saw on May 23. A rising OI usually means new money is entering the market. That can help support a continued price rally.
But with price spikes come liquidations. Around $234 million worth of positions were liquidated in the last 24 hours. Most of those about $221 million were from traders betting against Bitcoin. That means short sellers got caught as the price moved sharply higher. The current long-to-short ratio for BTC is 1.06. This tells us more people expect the price to keep going up.
Looking ahead, markets are watching U.S. labor data due out Thursday. Traders are also paying close attention to any speeches from Fed officials. These updates may give new clues about future policy changes. If the news is favorable, it could give Bitcoin another push higher.
As long as institutions keep buying and derivatives traders stay bullish, there’s a strong chance Bitcoin could break above $120,000 soon.
Bitcoin Could Reach $120K, With $2.5B in Shorts at Risk
Technical indicators are still supporting the bulls. The Relative Strength Index (RSI) on Bitcoin’s daily chart is at 61. That’s comfortably above the neutral 50 line and shows that upward momentum is still intact. Also, the MACD, a popular momentum indicator, flashed a bullish crossover in late June. Since then, the histogram bars have stayed above zero and continue climbing. This points to strong buying pressure.
Even with all this, analysts warn that a correction is always possible. If that happens, Bitcoin might fall back to $108,355. That level was the top of its earlier trading range. A retest of that zone, if successful, could act as a springboard for more gains.
For now, attention is on the $120,000 mark. Breaking that could have major effects. It might trigger even more short liquidations and confirm that the bull run still has legs.
Top analyst Axel Adler says the MVRV ratio is worth watching. This tool compares Bitcoin’s current market price to its average purchase price (realized value). It’s useful for spotting points where investors might start selling.
According to Adler, the last four years show that Bitcoin usually faces heavy selling once the MVRV ratio hits 2.75. Based on the current cycle, that could happen when BTC reaches about $130,900. We’re not there yet, but it’s a level worth keeping in mind. That’s likely when long-term holders might start locking in profits.
Until then, bulls appear to be in control. The recent breakout above $112,000 cleared important resistance. That move opens the door to another climb, possibly to $130,000, as long as momentum continues.
The three-day chart backs this up. A large green candle has pushed BTC to $118,683. Traders are optimistic. Technical conditions suggest we might see more gains, especially if Bitcoin breaks cleanly above $120,000.
Adler’s model puts $130,900 as a likely turning point. If the price nears that, we might see more people taking profits. But until then, the current uptrend looks strong.
Dogecoin Nears $0.20 as Meme Coins Lead Crypto Rally
Dogecoin is catching up with the broader market. On Friday, DOGE moved close to $0.1990. That’s a solid gain and shows growing interest in meme coins. Activity levels are now close to what we saw in May, when Dogecoin hit $0.2597.
Futures Open Interest (OI) in Dogecoin has been climbing too. That means traders are taking more risks. It’s a sign of strong momentum behind the meme coin.
Right now, meme coins are leading the rally. They’re outperforming other major crypto sectors like smart contracts and Layer-1 networks. CoinGecko reports that meme coins are up more than 12% in the past day. That brings the total market cap for meme tokens to about $71 billion.
Compare that to smart contract platforms. They gained just 6.2% over the same period. Their combined value now sits at $3.2 trillion. Layer-1 tokens are even further behind. They’re up 6.1%, with a total market cap slightly over $3.1 trillion.
Why are meme coins rising faster? Analysts think traders are rotating their profits. After Bitcoin hit $118,869 earlier on Friday, some investors may be shifting funds into other assets. Meme coins often benefit from this kind of capital movement.
Derivatives Market Shows More Dogecoin Activity
The derivatives market is heating up for Dogecoin. CoinGlass says DOGE futures Open Interest now stands at $2.57 billion. That’s a big jump from $1.7 billion on July 2.
Trading volume is also rising. Dogecoin-related derivatives hit $7.2 billion in volume. That’s a clear sign that more people are betting on price moves.
But with all that activity, there’s also more risk. Over the last 24 hours, $13 million in liquidations have taken place. Short positions took most of the hit $10 million gone, while long positions saw $3 million in losses.
The long-to-short ratio has now moved above 1. That means more people are expecting the price to go up. Trader sentiment is still bullish.
Technical Picture Backs Up the Bullish Case
Dogecoin is just under the important $0.20 resistance. It’s trading well above its major moving averages. The 200-day EMA is at $0.1818. The 100-day and 50-day EMAs sit at $0.1748 and $0.1725. These levels could act as support if prices dip.
The RSI is high, around 85. That’s technically overbought. While it shows strength, it also means a short-term pullback could happen. Traders often take profits when the RSI reaches these levels.
Still, the current trend is clearly upward. If Dogecoin closes above $0.2000 on the daily chart, that would give even more strength to the bullish case. Confidence among traders seems strong, and that’s helping to keep the rally alive.
Bitcoin is staying close to $118,000 after setting a new all-time high. The market is reacting to possible interest rate cuts from the Fed and steady ETF inflows. Institutional money is flowing in, and derivatives show signs of fresh capital entering the market. Technical signals and sentiment remain bullish, with a potential path toward $120,000 and beyond. But analysts also warn of possible corrections and profit-taking at higher levels.
At the same time, Dogecoin and other meme coins are gaining fast. They’re leading the current rally, supported by rising trading activity and strong futures demand. Dogecoin is approaching the $0.20 mark, with the technical outlook still favoring more gains. Short sellers are getting squeezed, and traders remain optimistic.
Both Bitcoin and Dogecoin show strong momentum right now. But with rising prices, traders are watching key levels closely. The next few days could be important for the next leg of the rally or the first signs of a pullback.