Bitcoin Prices Falter Amid Supportive Altcoins
Bitcoin prices have dipped below $113,000, prompting fears within the crypto community. Data from crypto.news shows Bitcoin is currently valued at $112,909,representing a 2.5% decrease today. This downturn marks a meaningful retreat from last week’s peak near $118,000. Over the past seven days, Bitcoin’s value has fallen by 3%, underscoring the market’s increasing instability.
Technical analyses point to a gloomy future. Bitcoin’s Relative Strength Index (RSI) has dropped to 45.57, indicating reduced momentum. The Moving Average Convergence Divergence (MACD) has also crossed downwards,reflecting decreased purchasing power and a bearish sentiment. Moreover, futures volume has soared by 137.2%, reaching $72.97 billion, suggesting heightened speculation as traders try to benefit from the volatility.
On-chain data supports the negative outlook.An analysis by CryptoQuant researcher Joao Wedson reveals a sign of exhaustion in the Bitcoin cycle. The Spent Output Profit Ratio (SOPR) Trend Signal indicates declining profitability. Investors are purchasing BTC at historically high prices, rather than at more favorable times in the past.
- Bitcoin’s Short-Term holder Realized Price is now $111,400, crucial for institutional investors who missed earlier opportunities.
- The Sharpe Ratio, measuring risk-adjusted returns, has weakened since 2024, rendering Bitcoin less appealing to major institutional players.
However, social interest around Bitcoin has waned, with altcoins attracting more attention. Analyst Joao suggests focusing on the Altcoin Season. Yet,current market trends reveal a different story. The Altcoin Season Index, which recently hit 78, has now fallen to 64. The price action mirrors Bitcoin’s decline, with Ethereum, XRP, BNB, Solana, Dogecoin, and other leading altcoins all experiencing ample losses.
With the Crypto Fear and Greed Index now reading 47, markets are edging towards fear. Both Bitcoin and altcoins are under pressure, leaving traders waiting for more definitive signs before taking significant risks.
