The cryptocurrency market, particularly Bitcoin (BTC), has been facing increased bearish sentiment in the short term due to the ongoing geopolitical crisis in the Middle East. Over the weekend, BTC price dipped below $100k and closed the week at around $101,339, marking the lowest weekly close in recent times.
This downward trend suggests a potential further weakness in the short term, with a midterm target of approximately $93k. Additionally, in the weekly timeframe, BTC price has formed a potential macro double-top pattern along with bearish divergence in the Relative Strength Index (RSI), indicating a possible reversal in the trend.
If the support level around $93k fails to hold in the coming weeks, there could be a significant drop towards $76k in the following months. The volatility in the crypto market has resulted in a notable increase in liquidations of leveraged long traders, contributing to the fear of further capitulation among investors.
Renowned crypto analyst Benjamin Cowen believes that Bitcoin will continue to outperform altcoins in the near future. With Bitcoin dominance surpassing 65 percent and potentially reaching 70 percent soon, Cowen anticipates a further decline in altcoins against Bitcoin. This prediction suggests that the much-anticipated altseason in 2025 may be delayed as altcoins bleed out to the dominant Bitcoin market.
Cowen also suggests that the wider crypto market, led by Bitcoin, is likely to establish a local low around August or September. On the other hand, analysts on Wall Street are expecting a parabolic rally in the crypto market during the fourth quarter of 2025, extending possibly into the first quarter of 2026.
As the crypto market navigates through these turbulent times, investors are advised to stay informed and cautious about the evolving trends and market dynamics. The future of cryptocurrencies remains uncertain, but with careful analysis and strategic decision-making, investors can navigate the market effectively and capitalize on potential opportunities.