Cryptocurrency analysis firm Swissblock has released a comprehensive assessment of Bitcoin's pullback after testing the $118,000 level. The firm described the price's failure to sustain upward momentum as a “failure of momentum.” According to Swissblock, Bitcoin attempted an upside breakout, but the attempt failed to gain momentum above the $118,000 level, turning negative again. Analysts described the current situation as a “failed breakout zone” and noted that such a consolidation could last longer. It was noted that although profit-taking increased throughout July, these sales were not as intense as those at the end of 2024. Swissblock summarized the situation by saying, “There is selling pressure, but it is not excessive. This is a cooling-off, not capitulation.” Another noteworthy metric is that 96% of supply is profitable. The firm noted that this indicates strong investors are still in the market, but added that these profits could increase selling pressure: “Any increase in supply could be met with selling until demand returns.” Related News: Donald Trump Takes a Harder Line on Powell: “If He Doesn't Lower Interest Rates, the Fed Board of Governors Should Take Control” Swissblock stated that Bitcoin's fundamental indicators are solid. The Blockchain Fund Index (BFI) remains neutral at 60, indicating that network growth is slowing but liquidity is recovering. It added that this environment supports a sideways trend and paves the way for a strong breakout. A more cautious outlook was drawn for the altcoin market. While it was noted that Ethereum remained structurally more resilient against Bitcoin, only 5% of the top 100 crypto assets showed positive momentum. Swissblock stated, “Rotations are narrowing, and it's essential to be selective.” Swissblock's assessment concluded as follows: Profit taking is decreasing and selling pressure is being absorbed. Bitcoin is poised for a breakout, but momentum needs to re-sync. Be careful while BTC is trading sideways; Ethereum and altcoins could break out strongly when momentum returns. *This is not investment advice. Continue Reading: Why Did Bitcoin Price Decline? Is the Altcoin Season in Trouble? Here Are All the Answers and Predictions for What’s to Come