Cryptocurrency markets showed early signs of rotation Monday as Bitcoin flirted with a bullish reversal while several altcoins and memecoins posted sharp gains. After dropping below a key level on Friday, BTC traded around $112,080 and appears to be forming an inverse head-and-shoulders pattern — a technical setup traders watch for potential breakouts.
The upside momentum wasn’t limited to Bitcoin. Dogecoin, Bonk and a raft of newer memecoins surged, with DOGE rallying more than 7% on heavy volume. Layer‑1 and exchange token plays also attracted attention: Ethena’s governance token ENA jumped after treasury firm StablecoinX raised $530 million and signaled plans to buy ENA, while Hyperliquid’s community wrestled with a proposal to issue a native USDH stablecoin tied to third‑party providers.
On‑chain data painted a mixed picture. The share of illiquid Bitcoin supply hit record highs, suggesting long‑term holder conviction, even as exchanges and analytics firms flagged the fastest pace of whale selling since 2022. At the same time, Bitcoin mining difficulty reached a new high, and MicroStrategy’s Michael Saylor hinted at additional corporate purchases — factors that can support price if buying resumes.
Derivatives activity amplified the move: futures open interest for DOGE, SUI and HYPE rose double digits, and options markets show bullish skew for XRP and SOL, while BTC and ETH still carry some downside hedging pressure. ETF flows were modestly negative for the day, with spot BTC and ETH products recording outflows, keeping short‑term liquidity dynamics in focus.
Why this matters: The market is balancing constructive technicals for Bitcoin with divergent on‑chain signals and active positioning in derivatives. Memecoins’ renewed appetite underscores retail risk‑taking, but concentrated flows and token unlocks ahead could quickly change sentiment.
Risk considerations: Expect volatility. Whales offloading, token unlock schedules and upcoming U.S. benchmark job revisions can trigger swift moves. Traders should size positions and use risk management tools.
What to watch next: U.S. BLS employment revisions, Hyperliquid’s USDH issuer vote and any corporate treasury buys by public firms.
Source: CoinDesk. Read the original coverage for full details.
