Bitcoin and Altcoins at a Crossroads: New Highs or Incoming Correction？

The cryptocurrency market has arrived at an important decision point. Bitcoin (BTC) recently pulled back slightly, with many other coins also trading in the red, leading market participants to closely watch whether Bitcoin will soon break its all-time high or if another price drop is imminent.

Should Bitcoin manage to move past its resistance and reach new highs, experts believe it could trigger a strong rally for altcoins. This might even mark the first real “altcoin season” of this market cycle. In these periods, altcoins often outperform Bitcoin, but such rallies are usually short-lived.

Early Meme Coin Rally: Overheating Signal or Normal Market Phase？

Interestingly, as Bitcoin and other major altcoins surged recently, analysts noticed something unusual: the sudden rise of low-value, meme-inspired coins, often called “crap coins.” These tokens typically rally at the very end of a bull market. But seeing them pump this early has raised concerns about whether the market might be overheating too soon.

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However, crypto analyst Scott Melker thinks this might just be a normal part of an altcoin rally. “Usually, these speculative coins jump towards the end of an altcoin rally, just before money flows back into Bitcoin,” Melker explained. “It all depends on whether were in a true bull market or just seeing a temporary rally.”

Another shift in the market is the fresh wave of new money entering the system. Melker pointed out that meme coins, Bitcoin, and altcoins all moved up together recently — something that hasnt happened for a while. This shows new investors might be joining the market.

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Bloombergs McGlone Cautions on Bigger Market Correction Potential

Adding to the uncertainty, Bloomberg analyst Mike McGlone shared his thoughts, suggesting the market could be headed for a bigger correction. He said that back in April, Bitcoin, stocks, and bonds all dropped together before bouncing back — with Bitcoin leading both the fall and recovery.

McGlone warned that inflation remains too high, and the U.S. Federal Reserve might not be able to support markets like it used to. Rising bond yields and global trade tensions are also adding pressure. In his view, markets could soon turn lower.

Bitcoin Technicals: Resistance Near $106k, Support at $88k-$90k, Chart Strength Persists

Bitcoin is struggling to break past the $106,000 level, as it hasnt closed above it yet, even though it has tested it a few times. On the downside, the area between $90,000 and $88,000 is an important support zone.

Source: TradingView

However, from a technical point of view, the chart still looks strong — there are no warning signs like bearish divergence, and the key moving averages (50-day and 200-day) are both trending upwards. Even though Bitcoin is overbought, this is usually seen as a sign of strength, not weakness, for this asset.