Bitcoin has seen a few days of mixed price action after its recent drop from $99,000 to $90,000. The price is now holding above the $95,000 level, and this area is crucial in determining whether BTC will continue its rise towards the $100,000 mark or will retreat to find liquidity at lower levels. If BTC fails to hold above $95,000, a correction could lead to a test of support at $90,000 or even lower levels.
CryptoQuant CEO, Ki Young Ju, shared an insightful analysis about X, warning that this alternate season will not be like previous cycles. He describes it as “strange and challenging,” noting that although market sentiment remains positive, there is not a lot of new liquidity to fuel the broad-based rallies.
Joe also highlights that Bitcoin appears to be drifting away from the broader cryptocurrency ecosystem, with institutions and retail investors increasingly interacting with Bitcoin through paper-based second-layer solutions such as ETFs and funds.
This shift could make it difficult for BTC to maintain its historical correlation with altcoins, suggesting that altcoin rallies may be more fragmented and unpredictable this time around. As Bitcoin faces these unique dynamics, the next few days will be crucial in determining its near-term trajectory.
Is Bitcoin moving away from cryptocurrencies?
Over the past few years, Bitcoin has ironically evolved into a global asset that is increasingly being adopted by traditional finance. This shift has seen BTC move away from the cryptocurrency ecosystem that originally fueled its growth. Instead of being a standalone digital asset, BTC is now more integrated into the legacy financial system.
Using tools like ETFs, MSTR (MicroStrategy), and other institutional funds, BTC is effectively creating its own second-layer fiat ecosystem. This move to traditional finance has created a disconnect between Bitcoin and the rest of the cryptocurrency market, making it difficult for altcoins to follow Bitcoin’s lead as they did before.
This dynamic is set to change during this Alt season, According to CryptoQuant CEO, Ki Young Joo. In a recent analysis, he highlighted that this alternative season will not follow the familiar patterns of previous sessions. It will be “strange and challenging”, with only a few winners emerging from the market.
Market sentiment remains positive, but a lack of new liquidity could hamper broad-based growth. While Bitcoin’s integration into traditional finance has provided a significant boost, it has also made it more disconnected from altcoins, breaking the link that previously existed between Bitcoin and the broader cryptocurrency ecosystem.
As a result, only a few altcoins are now showing independent trends, driven by new liquidity that may lead to higher prices. This shift in dynamics will likely lead to a more fragmented alternate season, where winners will be few and far between.
What does price action tell us?
Bitcoin price is showing calm and measured behavior after weeks of violent rises that consistently hit all-time highs. Currently trading at $94,850, the market appears to be in a phase of indecision, with traders uncertain about Bitcoin’s short-term direction.
Despite this, the price remains firm above critical levels, and the next few days will be crucial in determining whether Bitcoin can maintain its momentum. If BTC can stay above the $92,000 mark, a path to a retest of the previous all-time high just below $100,000 becomes more likely. This may indicate a continuation of the uptrend, as buyers remain active in this key demand area.
However, failure to hold the $92K level could change sentiment, increasing the possibility of a correction or consolidation period. For now, all eyes are on whether Bitcoin can consolidate support above $92,000 and push towards the next price targets, as the market remains in a critical moment of balance. The coming days will likely reveal whether this pause is a temporary consolidation or a prelude to further upward price action.
Featured image by Dall-E, chart from TradingView