After closing the last four days in a bearish outlook, Bitcoin’s (BTC) price has significantly slowed down in the initial bullish momentum towards the much-hyped target of $100k. Moreover, the flagship coin has consistently closed below the previously established support level of $95k.
Is the rally losing steam?
While Bitcoin’s dominance has weakened, altcoins are showing signs of a bullish trend. On the daily chart, Bitcoin continues to form higher highs, but the Relative Strength Index (RSI) is showing a bearish divergence, which suggests the momentum may be fading.
This could indicate that more investors are turning their attention to altcoins, fueling a rotation of capital within the crypto market.
Bitcoin’s price peak at $99.5k last week saw investor sentiment reach extreme greed, with the sentiment index hitting 93%. However, that has since dropped to about 75%, suggesting that while greed still dominates, it’s not as intense as before. Over the past two days, the US spot BTC ETFs experienced significant outflows, totaling more than $550 million.
On Tuesday, Bitcoin’s spot ETF issuers saw a net outflow of roughly $122 million. BlackRock’s IBIT saw no net change, while Fidelity’s FBTC and Grayscale’s GBTC experienced the biggest outflows of $95 million and $36 million, respectively.
On the positive side, Bitwise’s BITB and Grayscale’s BTC were the only funds with inflows, attracting $6.47 million and $4.84 million.
Despite Bitcoin still being in a macro bull market—confirmed after the 2024 U.S. elections—the bullish momentum is gradually shifting toward altcoins, particularly Ethereum (ETH). This suggests a growing interest in altcoins, with Bitcoin’s role in the market weakening slightly.
From a technical perspective, Bitcoin may retest the $85k support level if it fails to hold above the $91k range. Veteran trader Peter Brandt believes Bitcoin could climb toward $130k before experiencing a major correction, similar to past bull cycles.
The shift in investor focus suggests that Bitcoin’s dominance may soon be tested—only time will tell which way the market will blow.
Altcoins, particularly Ethereum, are gaining momentum, leading to a shift in investor focus and potentially reducing Bitcoin’s dominance in the market.
Bitcoin’s price has slowed due to a bearish divergence in the RSI, suggesting waning momentum and a shift in investor sentiment toward altcoins.
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