Altcoins
Bitcoin looks indecisive as price refuses to climb beyond $64,500; This is how Altcoins react
The Bitcoin price trend has left many people on edge. Despite the 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 explained how the current weakness in the altcoin market relative to Bitcoin is a major concern.
He explained that Bitcoin lost the mid-level at $66.5K, and another important level at $64K is also in play. For bullish momentum, Bitcoin needs to reclaim the $66.5K level to target the range high around $73,000. Currently, Bitcoin appears indecisive and could potentially decline. The $64,000 level is key support; breaking it could lead to a decline to the low of the range at $60,000.
However, on the other hand, Total 3 (excluding Bitcoin and Ethereum) is above the major support level at 560. This level is considered a decent buying zone for many altcoins if it aligns on individual altcoin charts. Despite the market slowdown, some altcoins present buying opportunities, especially during large liquidation cascades for those with a long-term perspective.
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 influx of capital, as in evidenced by the stablecoin index. This has led to strong investment activity, particularly from venture capital (VC) firms, which have injected unprecedented amounts of money into the market.
Highlighting the following 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 a million new tokens created since April 2024 , overwhelmed the market despite increased liquidity. of the Bitcoin ETF.
The increase in token supply has diluted the market, causing altcoins to perform poorly. Many major altcoins have struggled to match Bitcoin’s performance, with a few exceptions managing to outperform Bitcoin since the FTX collapse.