Bitcoin Price Outlook and Altcoin Market Analysis

Bitcoin’s flash crash from $100,000 to $91,300 on February 3 set the tone for the first half of 2025. Since then, Bitcoin has consolidated within a tight range between $95,500 and $99,000, while altcoins struggle to gain traction as BTC dominance hovers close to its four-year peak.

Altcoin Market Struggles Amid Declining Sentiment

The Solana ecosystem has suffered a steep correction in its market capitalization, down to $9.96 billion, erasing over 7% of its value in the last 24 hours. The altcoin market is facing the effects of declining sentiment and waning demand among traders.

Bitcoin Flash Crash Sets the Tone for 2025

Bitcoin’s price rally to the $100,000 milestone and its all-time high of $109,588 kicked off the 2024 bull market. In 2025, BTC suffered a flash crash, slipping to a low of $91,231 on February 3. Despite the short-term cooling off period in the crypto market, BTC is unlikely to have hit its cycle top.

Altcoins Consolidate as Bitcoin Dominance Hits Four-Year Peak

The total crypto market capitalization excluding Bitcoin ranges around the $1.19 trillion mark. Altcoins continue consolidating as Bitcoin dominance hovers around its four-year peak. If Bitcoin dominance drops, capital could rotate into altcoins and utility tokens, paving the way for an altcoin season.

Best Altcoins to Buy Now

The top three altcoins that are currently in the buy zone and could recover in the next leg of the altcoin rally are Bittensor (TAO), Pyth Network (PYTH), and Dogecoin (DOGE). These tokens are currently below their average traded prices and could begin their recovery once the altcoin rally resumes.

Pyth Network (PYTH)

PYTH has been in a multimonth downward trend that started in December 2024. The token has been in decline, down to $0.2031 at the time of writing. Technical indicators support a bullish thesis in PYTH, and the token could rally 25% to test a key resistance level within an imbalance zone.

Bittensor (TAO)

TAO has several catalysts that could drive value higher in the coming weeks, including the Dynamic TAO upgrade and the launch of subnet AI tokens. The token could break out of its downward trend and close above the $379 level, testing resistance at $445.

Dogecoin (DOGE)

DOGE is currently ranging after a multi-month downward trend. A daily candlestick close above resistance at $0.30 could break the pattern and indicate a trend reversal in the token. Technical indicators on the daily chart are supportive of nearly 20% gains in the coming weeks.

Bitcoin Price Outlook

Derivatives data shows that traders have taken a cautious hands-off approach on the Chicago Mercantile Exchange (CME) over the past few weeks. The sentiment among derivatives traders is bearish as premiums continue to push lower, while open interest remains stagnant amidst no significant spike in ETF activity.

“Currently, BTC’s 7-day implied volatility (IV) is hovering around 40%, while 6-month volatility sits at 54%. While ETH’s 7-day IV is significantly higher at 66%, matching its 6-month volatility. On the surface, this suggests a period of relative calm before larger price movements in Q3. However, the notable discrepancy between BTC and ETH volatility signals that BTC may be undervalued, considering its 2-year high in market dominance (60.7%), increasing momentum for BTC strategic reserves, like Texas’ symbolic plans, and major geopolitical developments such as the resolution of the Israeli/Palestinian conflict and progress in Ukraine peace talks.” – Nick Forster, Founder at Derive.xyz

At the time of writing, Bitcoin trades at $95,689.

Stay up to date with the latest news and analysis on the cryptocurrency market with Global Crypto News.

Post Views: 2