BTC Climbs to $110,000 as Altcoins Follow, Though Breakout Faces Skepticism

Bitcoin Tests $110K Again as Altcoins Rally, But Market Positioning Remains Defensive

Bitcoin edged back above $110,000 for the second straight day on Tuesday, riding a broader crypto rally led by outsized gains in altcoins — but underlying market data suggests traders remain cautious.

BTC gained just under 1% over the last 24 hours, while the CoinDesk 20 Index rose 3.3%, buoyed by strong moves in ether (ETH), solana (SOL), and chainlink (LINK) — each jumping 5–7%. DeFi tokens outperformed, with uniswap (UNI) up 24% and aave (AAVE) climbing 13%, after SEC Chair Paul Atkins voiced surprising support for regulatory flexibility around decentralized platforms.

Crypto-related equities were flat, except for Semler Scientific (SMLR), which fell another 10%, pushing its stock value below the bitcoin it holds — a bearish sign for firms mimicking MicroStrategy’s BTC treasury strategy.

Despite the uptick, signs of froth are absent. Funding rates on Binance BTC perpetuals have hovered near or below zero, and leverage indicators remain tame.

“Bitcoin rarely tops when funding is negative,” said Vetle Lunde of K33 Research. “Positioning is still cautious, and that leaves room for further upside.”

The ProShares 2x Bitcoin ETF (BITX) — often seen as a proxy for retail leverage — has reduced exposure to 52,435 BTC, far below its late-2023 high. This, too, implies room for growth if sentiment turns bullish.

Still, others see limited follow-through.

“This isn’t a breakout with strong conviction,” said Kirill Kretov of CoinPanel. “It’s part of the usual volatility loop — an up move now, but possibly followed by a steep correction.”

Support levels at $105K and $100K remain key if momentum fades. Until then, bitcoin’s rally continues — but with one foot still firmly on the brake.