- Bitcoin has remained below US$100k since February 7 after hitting its all-time high of US$109,114 in January.
- The coin has seen 81 days of consolidation amid low volatility and macroeconomic uncertainty.
- Institutional adoption continues with Abu Dhabi’s sovereign wealth fund investing US$436 million in BlackRock’s Bitcoin ETF while several US states explore Bitcoin reserves.
- Analyst RektCapital suggests Bitcoin’s dominance approaching 71% signals a potential strong altcoin season ahead while Raoul Pal maintains his bullish stance by urging investors to consider the long-term perspective.
Although Bitcoin set the all-time high mark at US$109,114 (AU$172,043) on January 20, it hasn’t even moved past the US$100k mark since February 7. Currently, the largest crypto trades for just around US$96k (AU$151k), according to data from CoinMarketCap.
Bitfinex analysts believe that bears might be hanging around a little longer. In a recent report, they pointed to the fact that BTC trading is now “stretching into its 81st consecutive day of consolidation”, and there are several factors impacting sentiment:
With volatility at historic lows, the market remains directionless as geopolitical tensions and macroeconomic uncertainty weigh on sentiment.
BitfinexUnder the Hood Bitcoin Still “Intact”, Say Analysts
Although several technical indicators – like the Inter-Exchange Flow Pulse (IFP) – are turning bearish, the analysts believe the OG coin is still “structurally intact”.
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It also looks like inflation is going to be an issue for a while yet, with economic data not suggesting any US rate cuts on the horizon for now.
There’s also the continued institutional adoption, with several US states exploring Bitcoin reserves and Abu Dhabi’s sovereign wealth fund buying a US$436 million (AU$687.4 million) stake in BlackRock’s IBIT Bitcoin exchange-traded fund (ETF).
The Smell of Altcoin Season Is in The Air
Meanwhile, Bitcoin’s dominance is increasing and could soon “top out at 71%”, as analyst RektCapital wrote on X.
The analyst said that as BTC gets closer to that mark, chances for a stronger altseason increase.
The Higher Bitcoin Dominance = The Higher The Chance Of A Strong Altseason Occurring.
RektCapital
Rekt’s conclusion is that “the closer and closer Bitcoin Dominance gets to 71%”, there is an increased chance that we finally see a solid altcoin season.
The stronger and stronger the possibility of an extensive collapse in Bitcoin Dominance becomes to finally enable a strong Altseason.
RektCapitalPal: Still “the Greatest Macro Trade of ALL TIME”
Raoul Pal, co-founder and CEO of Real Vision, said he was “sad to see so many bearish and nervous in crypto” and urged investors to “please zoom out”.
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He said when “BTC looks like this” (referring to the below chart), it’s hard to understand why so many are sceptic.
In his signature “Don’t F*ck This UP” mindset, Pal urged his 1.1 million followers to stay calm and carry on – and stay out of leverage.
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