Key Insights:
- According to analysts, Bitcoin’s bull market holds despite a potential drop to $64K.
- BTC dominance remains high, hinting at a possible altcoin season ahead.
- Institutional investors accumulate, while on-chain data signals potential market exhaustion.
Bitcoin (BTC) faces challenges sustaining bullish momentum during market consolidation. Some analysts anticipate a potential price decline to $64,000. Despite this, multiple indicators suggest the broader bull market remains intact.
Bitcoin Market Faces Uncertainty Amid Resistance and Volatility
Bitcoin consolidated within a descending triangle, trading near resistance and inside the Ichimoku Cloud. According to The Crypto Express, this setup signals uncertainty, with a potential breakout dictating the next major move.
If BTC fails to break upward, it risks falling below $70,000. Some analysts are closely watching the True Market Mean Price, which is estimated at $64,000.
Joao Wedson highlighted this level as an important historical support. He observed that the same metric held firm during the crash triggered by the 2021 China mining ban. This stability preceded the climb of Bitcoin to a new all-time high.
Meanwhile, Glassnode’s BTC profitability stress ratio has surged to its highest level since September, reflecting increased market stress. Historically, spikes in this metric have coincided with periods of high volatility.
BTC Dominance and On-Chain Signals Indicate Strength
BTC’s dominance remains elevated, suggesting capital has yet to rotate fully into altcoins. This aligns with Titan of Crypto’s observation that the bull cycle remains intact.
He stated that the market structure of Bitcoin’s must hold for this trend to continue. Losing key support at $75,350, however, could shift sentiment bearish.
Institutional interest also remains firm. Spot Bitcoin ETFs saw $275 Million in net inflows on March 17, reversing a month-long streak of outflows.
This indicates that large investors are preparing in anticipation of the Federal Open Market Committee (FOMC) meeting. The Federal Reserve is expected to maintain steady interest rates during this meeting.
Metaplanet, dubbed “Asia’s MicroStrategy,” also continues to accumulate BTC. It recently added 150 BTC worth $12.6 Million. The firm aims to hold 21,000 BTC by 2026, mirroring Michael Saylor’s long-term accumulation strategy.
Altcoin Season Incoming? Analysts Weigh In
With Bitcoin dominance still high, some traders believe an altcoin season could be imminent. Wedson claimed that relying solely on BTC will unlikely generate significant wealth in this cycle.
He highlighted early-stage projects as crucial opportunities for substantial growth. The rise in stablecoin supply also hints at sidelined capital preparing to enter the market.
However, CryptoQuant CEO Ki Young Ju cautioned that BTC’s bull cycle may be nearing exhaustion. On-chain indicators suggest whales are offloading Bitcoin. This could lead to months of sideways price action before a new trend emerges.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
