Benjamin Cowen analyzes Bitcoin’s price movement, market conditions, and the impact of macroeconomic trends. He highlights Bitcoin’s strength relative to altcoins and the factors that could influence its next move.
1. Bitcoin Consolidating Near Key Levels
Key Highlights:
- Bitcoin has been stuck in a tight range, frustrating traders.
- The 20-week SMA and 21-week EMA sit at 90K, a level Bitcoin often revisits.
- Bitcoin’s price moves tend to be less extreme with each cycle, making this consolidation expected.
- The market appears to be waiting for a catalyst to trigger the next major move.
2. Altcoins Struggling While Bitcoin Holds Up
Key Highlights:
- Bitcoin continues to outperform altcoins, with dominance at 61 percent.
- Ethereum is still trading near August 2024 levels, showing weakness.
- Many altcoins have already broken key support levels, while Bitcoin remains stable.
- Traders calling for an altcoin season may have to wait longer.
3. Macro Factors Could Dictate Bitcoin’s Next Move
Key Highlights:
- The Federal Reserve is expected to end quantitative tightening around mid-year.
- Rising bond yields and stock market performance may impact Bitcoin.
- If stocks weaken in March, Bitcoin could also see downside.
- The upcoming labor market report may serve as a catalyst for movement.
4. Key Scenarios for Bitcoin’s Price Action
Key Highlights:
- A breakout above 100K could trigger a new market rally.
- A pullback to 90K could lead to another sharp decline in altcoins.
- If Bitcoin does not push higher in March, it could begin resembling the slower correction of 2019.
🔥 Final Take: Bitcoin remains the strongest asset in crypto. Altcoins continue to struggle, and history shows that Bitcoin leads before altcoins recover. Traders should stay cautious and avoid premature bets on altcoins.
