Bitcoin Climbs Back to $110K as Altcoins Surge, But Traders Remain Wary of True Breakout

Bitcoin made a fresh push above the $110,000 mark on Tuesday, marking its second consecutive day holding that level amid renewed momentum across the cryptocurrency market. The price increase, modest at just under 1%, comes after a week of volatile trading and sharp liquidations caused by broader market jitters. Although bulls welcomed the return to six-figure territory, many analysts caution that the rally still lacks the strength to confirm a full-scale breakout.

Altcoins played a significant role in driving market sentiment higher. Ethereum, the second-largest cryptocurrency by market cap, jumped over 5% to trade near $2,800, while other majors like Solana (SOL), Chainlink (LINK), and Avalanche (AVAX) each gained between 5–7%. Notably, DeFi-focused tokens outperformed the broader market, with Uniswap (UNI) soaring 24% and Aave (AAVE) climbing 13% following favorable commentary from U.S. SEC Chair Gary Gensler, who noted the “evolving legitimacy” of decentralized finance protocols during a recent hearing before Congress.

Despite these gains, skepticism is running high among professional traders and institutions. On Binance, negative funding rates for Bitcoin perpetual futures suggest that many are still betting against a sustained move upward. Some see the rally as a classic “relief bounce,” driven by short-term technical factors and a temporary improvement in sentiment. Others point out that key resistance lies just ahead: Bitcoin’s all-time high near $112,000, set earlier this year, looms large as a psychological and technical barrier.

Further complicating the outlook is the lack of clear macroeconomic catalysts. While investors are hopeful that upcoming U.S. inflation data may open the door for Federal Reserve rate cuts later this year, the central bank has remained noncommittal. Traders are also watching for any news related to the ongoing U.S.–China trade negotiations and upcoming corporate earnings reports, both of which could influence risk appetite across global markets.

Market structure indicators also remain mixed. The ProShares Bitcoin Strategy ETF (BITO) and leveraged instruments like the BITX ETF have not seen significant inflows in recent days, suggesting that institutional conviction remains tepid. At the same time, blockchain data shows continued accumulation by large holders, often referred to as “whales,” which could provide a stabilizing force if prices come under pressure.

Technical analysts highlight that a sustained move above $110K could open the path toward new record highs, but failure to hold that level may result in a pullback toward $105,000 or even $100,000, where strong support has been observed in the past. For now, many are treating the current rally with cautious optimism, preferring to wait for confirmation in the form of increased volume, consistent ETF inflows, and bullish macro signals.

In the meantime, altcoins are enjoying renewed attention, with investors rotating capital from Bitcoin into higher-risk, higher-reward tokens. If the bullish trend holds, this rotation could further support the crypto market’s overall market cap recovery and extend gains across sectors like DeFi, layer-1s, and Web3 infrastructure plays.