Bitcoin Plunges Below $113K as On-Chain Metrics Weaken and Altcoins Surge

Bitcoin's throne wobbles as the king of crypto crashes through the $113K support level—on-chain activity drying up while investors flock to altcoin opportunities.

The Metrics Don't Lie

Network activity slows to a crawl as transaction volumes dip and large holders show hesitation—classic signs of momentum fatigue after the historic run-up.

Altcoin Season Arrives

Capital rotates aggressively into alternative cryptocurrencies as traders chase higher returns—because why settle for single-digit weekly gains when you can gamble on triple-digit altcoin pumps?

The institutional crowd keeps talking about 'diversification' while quietly rebalancing into riskier assets—because nothing says sophisticated investing like chasing the next shiny token that might 10x before lunch.

This rotation reminds everyone that in crypto, even trillion-dollar giants can get knocked down when the crowd spots something shinier elsewhere.

Bitcoin (BTC) has struggled to maintain upward momentum over the past week. Persistent resistance and weakening buying pressure have fueled the decline in price, now accelerating its losses to levels last seen over a week ago.

Weak technicals and on-chain fatigue fuel Bitcoin price crash

Technical indicators paint a cautious picture. Bitcoin’s Relative Strength Index (RSI) has slipped to 45.57, indicating a loss of momentum. Meanwhile, the MACD has crossed downward, reflecting bearish sentiment as buying pressure fades. Additionally, futures volume has surged 137.2% to $72.97 billion, suggesting heightened speculative activity as traders attempt to capitalize on the volatility.

On-chain metrics further reinforce the bearish outlook. A recent analysis by CryptoQuant researcher Joao Wedson, points to signs of cycle exhaustion. According to him, Bitcoin’s SOPR (Spent Output Profit Ratio) Trend Signal suggests profitability is drying up. The analyst warns that accumulation at current levels is unprecedented, with many investors buying BTC at historically high prices rather than during earlier, more favorable periods.

Joao also noted that the Short-Term Holder Realized Price, currently at $111,400, is now acting as a major reference point especially for institutions that missed earlier accumulation phases. He further stated that the Sharpe Ratio, a measure of risk-adjusted returns, has weakened compared to 2024, making Bitcoin less attractive to large institutional players.

A drop in social interest around BTC is adding to the bearish outlook. Joao noted that altcoins are more likely to reignite public attention, with the market potentially rotating out of bitcoin and into altcoins using reserves built up during earlier rallies.

“We are in an Altcoin Season, and that’s where your attention should be,” he added.

Altcoins under pressure despite rotation narrative

But despite the analyst’s Optimism around altcoins, current market signals suggest otherwise. The Altcoin Season Index, which had surged to 78 last week, has dropped to 64, hinting at a cooling sentiment.

In terms of price action, several of these assets have also retreated to negative price territory, similar to Bitcoin. ethereum (ETH) is down 7.23% over the past 24 hours, trading at $4,158.99 at the time of writing, while XRP (XRP) has dropped roughly 7.25% to $2.79. BNB (BNB), despite recent bullish momentum has also dipped 5.09% to $1,014. Solana (SOL) is down nearly 8%, while Dogecoin (DOGE) has posted losses over 11%, with other majors like Cardano (ADA) and TRON (TRX) also posting significant losses.

Adding to market caution, the Crypto Fear and Greed Index now reads 47, marking “Neutral” territory but edging toward fear. For now, both Bitcoin and the wider altcoin market remain under pressure, with traders waiting for clearer signals before re-entering in force.