Key Notes
- Bitcoin rebounded from $111,643 to $117,000 but faces resistance at $120,500.
- Retail investors are accumulating BTC faster than new supply is issued.
- ETH/BTC has surged nearly 75% since May, signaling potential for altcoin season.
Bitcoin BTC $116 818 24h volatility: 0.3% Market cap: $2.32 T Vol. 24h: $36.77 B and Ethereum ETH $3 911 24h volatility: 2.5% Market cap: $471.98 B Vol. 24h: $32.47 B turned green in the past 24 hours with BTC reclaiming $116K and ETH pushing above $3,900.
Research firm 10x Research said that several catalysts are driving the two largest cryptocurrencies toward key levels.
In a July 28 note, the firm forecasted that Bitcoin could retest its $111,673 breakout point before presenting a favorable risk/reward entry.
On August 7, Bitcoin dipped to $111,643 before swiftly rebounding to $117,000.
Several Catalysts Are Driving Bitcoin and Ethereum Toward Breakout Levels — But Is It Enough?
Actionable Market Insights
In our July 28 report, we noted: “We would prefer to see Bitcoin retest its $111,673 breakout level to provide a more favorable risk/reward entry point.” On… pic.twitter.com/1jPVNEwNyx
— 10x Research (@10x_Research) August 8, 2025
Caution Amid Major Developments
10x Research cautioned that compressed volatility, seasonally weak trading months, and the absence of strong macroeconomic drivers could limit bullish momentum.
Political developments, including President Donald Trump’s push to expand 401(k) crypto access and his emphasis on gold, may influence sentiment as well.
From Fear to Key Resistance Levels
Just a week ago, fear drove Bitcoin below $110,000 amid speculation of a market breakdown. However, Swissblock data indicates that risk remains contained.
Since then, Bitcoin has rallied into the firm’s “blue zone” target, as shown in a chart shared by Swissblock.
Now, price has reached the blue zone target.
If it consolidates here, wait for momentum to align.
Next target: breakout zone at $120.5K. pic.twitter.com/SScvo5P01z
— Swissblock (@swissblock__) August 8, 2025
Swissblock analysts now see $120,500 as the next breakout level, but warn that a period of consolidation will follow before any significant surge in prices.
Retail Accumulation Remains Strong
On-chain data from Glassnode highlights sustained buying from smaller investors. “Shrimps” and “Fish,” wallets holding less than 100 BTC, are absorbing supply faster than it is created.
Shrimp-to-Fish cohorts (wallets with <100 $BTC ) continue to absorb supply faster than it’s created. Monthly balance growth sits above +17K #BTC – outpacing the +13.85K $BTC issuance – with Shrimps alone adding nearly 10K #BTC , underscoring persistent retail-led accumulation. pic.twitter.com/eO7PadZHSG
— glassnode (@glassnode) August 8, 2025
Monthly balance growth is at +17,000 BTC, exceeding the monthly issuance of +13,850 BTC. Shrimps alone have added nearly 10,000 BTC, indicating strong retail-led demand.
Ethereum’s Outperformance Lifts Altcoin Sentiment
Ethereum has been quietly outperforming Bitcoin on a relative basis. According to BitBull, the ETH/BTC ratio has climbed nearly 75% since May’s lows and is now testing a significant resistance level.
The move is accompanied by a rise in the Impulse indicator, which measures altcoin market strength. Historically, this combination has preceded strong altcoin rallies.
ETH/BTC has quietly climbed back from the bottom.
Since May, it has gone up nearly 75%, and now it’s testing a major resistance level.
But this isn’t just about Ethereum.
Whenever ETH/BTC starts to rise, it often pulls the entire altcoin market with it.
That’s what we’re… pic.twitter.com/gIt1Rn9i1j
— BitBull (@AkaBull_) August 8, 2025
If ETH/BTC breaks above resistance and impulse strength continues to build, analysts say altcoin gains could accelerate sharply.
Altcoin Season Soon?
MN Trading Capital co-founder Michaël van de Poppe has gone “all-in” on altcoins, predicting potential returns of 200–500% in the next two to four months.
I remain all-in into #Altcoins as I think that there’s 200-500% to be made in the next 2-4 months.
A lot of #Altcoins haven’t really gotten back to their levels from early ’25.
Of course, some aren’t going to be showing momentum, but the recent move of $ETH is the first step…
— Michaël van de Poppe (@CryptoMichNL) August 7, 2025
He views Ethereum’s latest rally as a sign of growing risk appetite in the market. However, trader Ash Crypto urged caution, noting that August and September have historically been weak for cryptocurrencies.
$ETH is breaking out of a bullish falling
wedge which shows bull trend continuesWe all want pump like this but Aug-sept
are generally bearish months for crypto,
so i would be cautiously bullish.Resistance: $4,100
Support: $3,550 pic.twitter.com/UlEzromx2P— Ash Crypto (@Ashcryptoreal) August 7, 2025
Data from CoinGlass shows that Q3 has been Ethereum’s poorest-performing quarter since 2016, with an average return of just 6.48%. However, it still remains as one of the best crypto to buy in 2025.
