Bitcoin and a number of significant altcoins have begun a notable recovery; however, this rally is likely to encounter substantial obstacles near key resistance levels.

Key points:

• Bitcoin’s recovery may face selling pressure at $118,000, but if the bulls succeed in overcoming this resistance, they could retest the all-time high of $126,199.
• Notably, several major altcoins have rebounded from their strong support zones, though they are expected to encounter significant selling at higher prices.

Bitcoin (BTC) showed a robust recovery on Sunday, maintaining its momentum into Monday, spurred by expectations of a potential trade deal between the US and China. Glassnode reported a peak in negative sentiment and selling pressure, indicating a potential trend reversal.

Interestingly, BTC has been trading in a substantial range close to its all-time high for several weeks, with bears failing to maintain any break below that range, signaling that bulls are not rushing to exit their positions in anticipation of further gains.

Crypto market data daily view. Source: Coin360

While a rally toward the all-time high seems plausible, traders should exercise caution as ascending prices attract sellers. Alex Thorn from Galaxy Digital mentioned that Bitcoin’s bull market remains intact, but a drop below $100,000 could jeopardize the structural integrity of this bull phase.

As the potential for growth hinges on breaking resistances, the analysis extends to the leading cryptocurrencies to ascertain if these gains will flourish or be voided by selling at elevated levels.