Bitcoin and a range of altcoins have seen significant buying interest at lower price levels. However, a continuation of the rally seems doubtful as sellers are expected to reemerge at higher price points.

Key Highlights:

• Bitcoin and some altcoins have rebounded from their lows on Friday, but there is substantial resistance looming.
• Recent downturns in the US stock market were prompted by President Donald Trump’s announcement of a substantial tariff on China, which caused a tumultuous fall in the crypto market leading to a staggering liquidation of nearly $20 billion in just 24 hours. Many traders leveraged extensively, potentially incurring substantial losses.

Despite these liquidations, a fresh influx of strong long-term investors is anticipated, especially at lower price points, though an explosive bullish trend is not expected immediately.

On Sunday, Economist Timothy Peterson communicated to Cointelegraph that Bitcoin may undergo a cooling-off phase lasting roughly three to four weeks before it can resume its upward trajectory, albeit at a slower pace than in the past.

Bitcoin (BTC) Predictions:

• Recent price action suggests that sellers failed to maintain a downward trend after hitting a crucial support level of $107,000.
• Bitcoin prices dipped to around $102,000 but a swift recovery followed, indicating demand at these lower levels. Near $116,955, the BTC/USDT pair is likely to encounter selling pressures; should resistance fail, it could surge up to $121,020 and possibly touch its all-time peak of $126,199.
• If the price declines from current levels, potential support exists at $109,500 and then at $107,000. Buyers are expected to defend the $107,000 mark vigorously as falling below it raises the possibility of a severe downturn below $100,000.

For a deeper analysis of individual cryptocurrencies and predictions for the S&P 500 and US Dollar Index, continue reading in the article.