In recent days, Bitcoin (BTC) has faced a challenging period of bearish activity, causing a significant deceleration in its bullish momentum. This slowdown has stymied its much-anticipated ascent towards the ambitious $100,000 mark. The cryptocurrency has persistently closed below its previously established support level of $95,000, raising concerns among investors.
As the altcoin sector begins to gather bullish momentum, Bitcoin’s dominance is showing signs of weakening in the short term. On the daily chart, Bitcoin’s dominance has been forming higher highs, yet the Relative Strength Index (RSI) indicates a bearish divergence. This trend suggests that more investors are shifting their focus towards altcoins, fueling the ongoing rotation of capital within the cryptocurrency market.
Spot Bitcoin ETFs Experience Further Decline
Since Bitcoin’s price reached $99,500 last week, investor sentiment has shifted from extreme greed, with a drop from 93 percent to about 75 percent, reflecting a more cautious level of greed at the time of writing. In the past two days, the US spot Bitcoin ETFs have reported a net cash outflow exceeding $550 million, indicating a cooling interest among investors.
On Tuesday, US spot Bitcoin ETF issuers recorded a net cash outflow of approximately $122 million. Notably, BlackRock’s IBIT experienced zero net cash flow, while Fidelity’s FBTC and Grayscale’s GBTC saw significant outflows of $95 million and $36 million, respectively. Conversely, Bitwise BITB and Grayscale’s BTC were the only issuers to report positive cash inflows, with $6.47 million and $4.84 million, respectively.
What Lies Ahead for Bitcoin?
The current trajectory of Bitcoin mirrors its performance at the end of last year. The cryptocurrency has broken free from a period of stagnation, experienced a rally, and is now fluctuating below a resistance level while maintaining higher lows. Investors are advised to remain patient, as upward movement is anticipated soon.
Bitcoin’s macro bull rally was confirmed following the U.S. 2024 elections. However, the bullish trend is gradually shifting towards the altcoin market, spearheaded by Ethereum (ETH). From a technical analysis perspective, the BTC price might revisit the support level of approximately $85,000 if it fails to maintain the current range above $91,000.
According to seasoned trader Peter Brandt, Bitcoin’s price could potentially surge to $130,000 before undergoing a significant correction similar to previous bull cycles. This projection underscores the volatile nature of the cryptocurrency market, where opportunities and risks coexist.
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