Bitcoin
Bitcoin appears indecisive as price refuses to rise beyond $64,500; See how Altcoins are reacting
Bitcoin’s price trend has left many nervous. Despite recent gains, the price has fallen below $65,000. Analyst Miles Deutscher said Bitcoin remains just above the critical $64,000 level on the weekly chart, indicating potential danger. The analyst also mentioned how the altcoin market’s current weakness relative to Bitcoin is a major concern.
He explained that Bitcoin has missed the mid-level of $66.5K, and another significant level of $64K is also in play. For upward momentum, Bitcoin needs to recover the $66.5K level to reach the high range around $73K. Currently, Bitcoin appears indecisive, potentially falling. The $64K level is key support; breaking it could lead to a drop to the low $60,000 range.
However, on the other hand, Total 3 (excluding Bitcoin and Ethereum) is above the key support level at 560. This level is seen as a decent buy zone for many altcoins if it lines up with individual altcoin charts. Despite the market downturn, some altcoins present buying opportunities, especially during large sell-off cascades for those with a long-term outlook.
The analyst explains that the relative weakness of altcoins compared to Bitcoin can be attributed to market dynamics from 2021. During the 2021 bull run, the crypto market saw an inflow of capital, evidenced by the stablecoin index. This has led to high investment activity, especially from venture capital (VC) firms, which have injected unprecedented amounts of money into the market.
Pointing out the next reason, he said that with the market showing signs of recovery, a flood of new tokens were launched in early 2024. This increase in supply, with over 1 million new tokens created since April 2024, has overwhelmed the market. despite the increased liquidity of the Bitcoin ETF.
The increase in token supply diluted the market, causing altcoins to perform poorly. Many major altcoins have struggled to match Bitcoin’s performance, with only a few exceptions managing to outperform Bitcoin since the FTX collapse.