Against the backdrop of Bitcoin price stalling below $120,000, BTC has shown a lackluster performance, ETH has risen to $3,787, and XRP has returned to $3.55. Funds are clearly rotating, market structure is undergoing a change, and a new round of altcoin opportunities is emerging.
The fundamental reason for the stagnation of BTC prices
Bitcoin’s failure to successfully break through $120,000 is not only a reflection of technical pressure but also indicates that funds are reallocating their asset structure.
The reasons are as follows:
- Despite the large inflow into ETFs, it is primarily institutions that hold for the “medium to long term”; short-term active funds are more focused on altcoins with strong short-term explosive potential.
- Market psychology expects that BTC has entered a “slow bull phase,” making it difficult to see a rapid rise like that of 2020-2021, and is instead looking for new targets;
- Every time BTC fails to rise, it increases the pressure to take profits.
Why does ETH stand out?
The price of Ethereum has risen to $3,787, with an intraday high of $3,848, showing impressive growth. The main driving factors behind this include:
- ETH ETF Landing Expectations: The spot ETH ETF expected to be approved in August has heightened market enthusiasm;
- L2 networks are booming: platforms like Base and zkSync continue to advance, effectively expanding the use cases of the ETH network.
- Technical strength: RSI has broken through 70, MACD is widening upwards, and support levels are solid.
ETH is likely to attempt to break through the key level of $4,000 in the coming weeks.
XRP is the dark horse of this round of price increase
The price of XRP has risen over 25% since the beginning of July, currently reported at $3.55, making it one of the strongest performing mainstream cryptocurrencies in the past year.
There are three main reasons:
- Strong pull from the ETF concept: ProShares and others are actively laying out XRP ETFs;
- Regulatory clarity: The legal disputes with the SEC are gradually being clarified, boosting investor confidence.
- On-chain data improvement: the number of active wallets and transaction volume continue to rise.
From a technical perspective, if XRP can hold above $3.55, it is expected to test $3.84 and even challenge $4.00.
Altcoin Rotation Patterns and Risk Points
Currently, the market’s capital rotation pattern is evident:
- BTC: Net capital inflow but price stagnation;
- Altcoins such as ETH, XRP, and SOL: trading volume is increasing, technical patterns are positive, benefiting from narrative-driven expectations and speculative hype.
- The risks are also increasing: liquidity is weak, volatility is high, and it is easily impacted by market news.
How should beginners participate?
- BTC: Suitable for long-term holding, light positions can be established in the $116K–$118K range;
- ETH: If the price stabilizes above $3,750, consider making a small purchase;
- XRP: It is recommended to wait for a breakout above $3.60 before entering a position, with a target of $3.84–$4.00;
- Unified Stop Loss Principle: BTC
Conclusion
Bitcoin price stalls below $120000 is an important signal of the current market capital redistribution. ETH and XRP have become the main players in this round of rotation, which may not indicate that BTC has peaked, but investors can seize short-term opportunities in altcoins, operate cautiously, and allocate reasonably to have a chance of achieving better returns in the rotation market.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
