DataDash believes Bitcoin and altcoins are showing clear signs of weakness and may be poised for a correction. He points out that Bitcoin has struggled to hold above its 21-day moving average, a key indicator that previously supported higher price levels. In his view, the fact that the moving average now acts as resistance indicates there is more selling pressure than buying support. He warns that if Bitcoin cannot reclaim that level soon, it could drop to the 100-day moving average around 85 to 87 thousand dollars or even down to the 200-day near 75 to 80 thousand.
He also highlights shrinking inflows from key players like MicroStrategy, once a major buyer during Bitcoin’s upward run. According to him, MicroStrategy’s slowdown, combined with lower ETF inflows, suggests that the strong buy-side demand needed to keep pushing Bitcoin higher has weakened. DataDash sees a similar story in the altcoin market. He notes that altcoins have fallen below important moving averages, and major coins like Ethereum have been unable to break resistance against Bitcoin. He expects altcoins to underperform Bitcoin if a correction occurs.
DataDash believes it is not just crypto showing signs of stress. He points out that stocks, including the S&P 500, the NASDAQ, and the Russell 2000, are also failing to hold above their own moving averages. Because he sees Bitcoin as a risk-on asset, he thinks further declines in equities could spill over into crypto, bringing prices down.
Still, DataDash is not entirely pessimistic. He emphasizes that corrections are part of normal market cycles and can offer good buying opportunities. In his view, having cash on hand and waiting for clearer signs of market strength is a safer strategy than staying fully invested. He also suggests paying attention to other emerging sectors outside of crypto that may provide larger gains over time.
