Key Takeaways

• Bitcoin bounced off the $100,500 level after dipping to $100,400, showing continued bullish support at crucial zones.

• Bitcoin remains up 2% on the day, although momentum has cooled slightly below $105K.

• The ECB rate cut briefly spurred buying activity, but macro and social factors (like Musk vs. Trump) added short-term volatility.

• SUI led the altcoin rally, gaining nearly 9% and breaking past $3.25.

• Crypto market cap recovered over $50 billion, now sitting at $3.38 trillion.

Bitcoin Faces Tough Resistance

The week started positively for Bitcoin, with its price tapping $106,500 on both Monday and Tuesday. Despite the bullish push, BTC faced tough resistance at that zone and was swiftly rejected, sliding back by around $2,000.

BTC/USD Analysis

Source: TradingView

A mid-week catalyst came in the form of a European Central Bank (ECB) rate cut, which saw interest rates reduced to 2%. This initially triggered a small rebound, with Bitcoin spiking to $106,000 again. However, this momentum was short-lived.

Elon Vs Trump Shakes Market

The market experienced further turbulence after a public spat between Elon Musk and Donald Trump shook investor confidence. This drama intensified the sell-off, sending BTC spiraling down to $100,400 on Bitstamp, a low not seen in several weeks.

Yet, in a show of strength, bulls stepped up and fiercely defended the $100,500 zone. A bounce ensued, propelling Bitcoin back to $105,500 during Friday’s midday trading session. Although the flagship crypto has since slipped just below $105,000, it remains up 2% on the day.

SUI Takes The Lead Among Altcoins

The broader altcoin market echoed Bitcoin’s volatility but has seen a strong bounce in the past 24 hours. While many major altcoins are posting modest gains, one asset stands out: SUI.

Most Of The Crypto Market Is In The Green

Source: QuantifyCrypto

SUI Surges By Nearly 9%

As the day’s best performer, SUI climbed almost 9% and now trading above $3.20. Its rally follows a wave of renewed developer interest and community support.

Other altcoins also posted modest rebounds:

• Ethereum (ETH) is struggling to break past $2,500, despite a small uptick.
• Ripple (XRP) recovered to $2.17, up around 2% on the day.
• Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) have all posted similar percentage gains.

HYPE Retreats Slightly

On the flip side, HYPE, another altcoin that had been surging earlier in the week, is down approximately 2%, slipping below $34 as of press time.

Total Crypto Market Cap Rebounds

The total cryptocurrency market capitalization has made a notable comeback. Following yesterday’s dip, over $50 billion has been added back into the ecosystem, bringing the total market cap to $3.38 trillion, according to CoinGecko.

This recovery suggests that while volatility remains high, investor appetite for digital assets continues to grow, particularly around key support levels.

FAQ

Why did Bitcoin dip below $100,500?

The recent dip was fueled by a mix of macroeconomic factors, including central bank decisions, and social disruptions like the online fallout between Elon Musk and Donald Trump. These combined to increase short-term selling pressure.

Will Bitcoin recover above $106,000 again?

It’s possible, but $106K is acting as a significant resistance level. If bulls can sustain momentum and macro conditions remain favorable, a breakout above this level could follow.

What caused SUI to surge today?

SUI’s near-9% surge may be attributed to renewed interest from developers, ecosystem updates, or increased speculative demand following its sharp dip earlier in the week.

Is this a good time to invest in altcoins?

Volatility remains high, but sharp recoveries like today’s can offer short-term trading opportunities. Long-term investors should still exercise caution and research thoroughly before entering positions.

How is Bitcoin dominance affecting the market?

With BTC dominance at 61.5%, it continues to control much of the market momentum. A decline in dominance could signal increased interest in altcoins moving forward.