The cryptocurrency market has seen a modest growth of 0.71% today, with altcoins rising by 0.93%. Bitcoin’s price has increased from $86,912.41 to $87,464.80. However, crypto analyst The Flow Horse has issued a warning that this bullish momentum, especially in the altcoin market, may not be sustainable in the long run. Let’s delve deeper into the reasons behind this caution.
The Bigger Picture: Market Still in a Downtrend
Despite the gains observed today, The Flow Horse believes that the overall market trend remains bearish. At the beginning of the month, the total cryptocurrency market was valued at $3.18 trillion. However, since then, it has experienced a decline of 11.63%, while the altcoin market cap has plummeted even further by 19.4%. Over the past 30 days, Bitcoin has witnessed a 2.1% decrease, and Ethereum has fallen by 15.4%. While today’s slight recovery may indicate some buying interest, The Flow Horse maintains that it is insufficient to alter the broader downward trajectory of the market.
Key Resistance Levels That Could Determine the Market’s Fate
Currently, the crypto market remains 6.64% below its previous swing high, with the altcoin market down by 6.89%. Bitcoin itself is trading 5.76% lower than its last peak. With Bitcoin priced at $87,464.80, it is facing substantial resistance between $90,000 and $93,000. The Flow Horse suggests that unless Bitcoin manages to break through this range and establish it as a strong support level, the downtrend is likely to persist.
Bitcoin’s dominance in the market has significantly increased this year. Starting at 57.60% at the beginning of 2024, it has now risen to 61.67%. Given Bitcoin’s pivotal role in shaping the overall market trend, The Flow Horse emphasizes that the performance of altcoins is contingent upon Bitcoin stabilizing. Until then, the market outlook remains uncertain despite the gains witnessed today.
In conclusion, while the market may appear positive today, it is imperative to wait for Bitcoin to make its next move to determine the future trajectory of altcoins. Until then, altcoins remain in a precarious position, treading cautiously in the volatile market environment.
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