- Bitcoin’s downtrend continues with lower lows, while altcoins show resilience, forming higher lows and gaining strength.
- Market structure mirrors 2020’s bull run setup, with altcoins in accumulation and total market cap testing breakout levels.
- Selling pressure dominates Bitcoin, but mid and lower-cap altcoins may rally if BTC stabilizes, hinting at a potential trend shift.
The crypto market is exhibiting structural similarity with the 2020 bull run. The total market capitalization is testing key break-out levels after the correction. The move is tracing a similar pattern to the break-out in 2020 before a massive rally. Bitcoin remains bearish, but mid-cap and lower-cap altcoins are gaining strength.
Bitcoin Faces Continuous Downtrend
According to analyst Mostache’s data, Bitcoin’s price action remains under pressure, forming lower lows. A downward-sloping trendline confirms the ongoing bearish momentum. Each breakdown from a previous low results in further declines.
The inability to hold key support levels indicates strong selling pressure. After reaching a lower low, Bitcoin shows minor signs of recovery with small green candlesticks. However, the bearish trend structure remains intact.
The persistent decline in Bitcoin’s valuation affects overall market sentiment. The breakdown of previous lows signals a weak price structure. The market lacks confirmation of a bullish reversal. Consequently, Bitcoin struggles to establish strong support zones. Until a clear trend shift occurs, selling pressure dominates its price action.
Altcoins Show Resilience Against Bitcoin
Crypto analyst Crypto Anbu shows the altcoin market displaying strength relative to Bitcoin. The total market capitalization, excluding the top 10 assets, forms a higher low. This indicates a potential trend shift as mid and lower-cap assets gain traction.
An upward trajectory shown by a trendline connecting the most recent lows points to a slow price increase. This movement supports altcoin domination by standing in opposition to Bitcoin’s bearish structure.
Moreover, the key support level is standing firm, allowing altcoins to build strength upward. The market structure is signaling an accumulation phase before a potential breakout. If Bitcoin settles down, altcoins could see upside action. Historically, the same patterns have preceded powerful altcoin rallies.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
