“Bitcoin faces a highly congested price zone between $97.2K and $98.5K… In the very short term, Bitcoin needs to:
Maintain its bullish structure since the correction's bottom.
Consolidate within the $97.2K–$98.5K resistance zone and turn it into support.
As we focus on Bitcoin's current bullish structure, it’s critical that it does not encounter a decisive rejection below the $97.2K–$98.5K resistance zone”.
Bitcoin, now at $95.8K has been rejected in this resistance zone on two occasions and has lost the trendline established during last week’s correction. Additionally, it has failed to reclaim the primary trendline. So, what’s next?
MicroStrategy bought BTC (no matter when you read this).
Being in Bitcoin, from the market's perspective, is like playing on a high-performance team with elite athletes: you can barely savor the victories before the next challenges arrive.
Bitcoin had a historic month-end with a 37% positive performance. And because (no matter when you read this) MicroStrategy has bought more BTC, and the Altcoin Season has reminded us why certain projects are where they are: XRP is now the third-largest cryptocurrency by market cap, surpassing SOL and USDT, and old reliable projects like LINK are waking up.
But remember, on this team, you can’t let your guard down or you’ll be benched. Just hours ago, we learned about the movement of BTC wallets held by the U.S. government, holdings that could be sold on the market. Could this be the final reminder from the outgoing administration? Possibly, but in the meantime, don’t FUD: if they sell, at least they’ll be able to say they sold at a better price than the German government.
Meanwhile, we’re in Altcoin Season, and Bitcoin remains strong both fundamentally and in terms of price momentum. Let’s see what this week has in store for us.
Speedometers indicating the current state of BTC. The full dot represents the current reading and the white dot represents one week ago.
BTC Dominance Falls, Market Cap Endures.
Bitcoin's dominance has finally broken below the Weekly 20 SMA, ending a trend that had persisted since before the Halving. This is great news for Altcoin Season, which, as we noted in the previous analysis, was at a "now or never" moment to solidify and avoid being just a short-lived spectacle.
Bitcoin Dominance.
Monitoring the reaction of Bitcoin's dominance amidst the Altcoin fever is key to understanding Bitcoin's performance in the market. However, we don’t expect its dominance to collapse to lower levels without first bouncing, and that potential retest of the Weekly 20 SMA will be an interesting point to watch.
Bitcoin's dominance has decreased, but its market capitalization hasn’t dropped. From what we can see, the answer is no, which sets up the ideal scenario for the continued development of Altcoin Season. Bitcoin keeps rising while its dominance falls, creating the perfect environment for Altcoin Season to thrive, with Bitcoin providing an extra boost to the Alts.
Bitcoin Dominance & Market Cap.
Price Momentum is Strong, but…
Yes, at this moment, the spotlight is on altcoins, with liquidity flowing into various narratives, even though Bitcoin’s market cap hasn’t decreased (its volume remains the same, but it represents a smaller slice of the total market cap). However, this doesn’t mean a volatile move in Bitcoin would go unnoticed by altcoins—quite the opposite...
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