With bearish pressure mounting in Bitcoin’s market dynamics, the flagship asset is likely to experience further price decline in the upcoming days. However, several support ranges continue to act as a roadblock to recent negative moves, holding off against an extended correction.
Trendline Support To Determine Bitcoin’s Next Phase
Bitcoin’s price action hangs in the balance as crypto expert and trader Rekt Capital draws a critical trendline support as the primary defense against further losses. Rekt Capital’s analysis addresses BTC’s possible next phase in light of the heightened volatility that has befallen the market.
The expert believes that holding this trendline support might stabilize the market, allowing BTC to muster enough momentum for a rebound toward higher levels. This shows the importance of sustaining the support, otherwise, Bitcoin risks deeper correction.
Delving into price movements, Rekt Capital highlighted that BTC is having trouble sustaining the $101,000 range low as indicated by the black line in his chart. However, it continues to retest the blue diagonal line at the $99,158 level as support.
Since this blue diagonal defines a trend, further price declines into the lower $90,000s might be prevented as long as it remains a support point. A break below the support is likely to alter market dynamics as speculations about a bear season in sight emerge within the community.
Even though Bitcoin has recently faced a significant negative move following a general market crash, the asset continues to dominate the entire crypto sector. Rekt Capital outlined that BTC’s dominance is steadily climbing, even as its price fluctuates.
A rise in BTC’s sovereignty implies that investors are persistently choosing it as a safer asset in light of volatile periods. As a result, the analyst declares that Bitcoin season is still intact until further notice, with traders seeking stability in BTC during unfavorable times.
While BTC continues to dominate the market, the tide will eventually turn in favor of altcoins in the foreseeable future, causing a potential start of the much-anticipated altcoin season. In the meantime, Rekt Capital urges investors and traders to be patient, indicating his confidence in an impending altcoin season.
Massive Funds Flowing Into BTC To Bolster Price Spike
Despite waning price performances, investors are showing substantial interest in BTC as evidenced by massive funds flows in the historical Spot Bitcoin Exchange-Traded Funds (ETFs). Network economist and author Timothy Peterson reported that capital inflows have surpassed $40 billion, marking its highest level ever.
Data reveals that the monthly amount invested in Bitcoin spot ETFs has risen to about $5 billion since October. Specifically, the exchange product net fund flows resumed its growth after a 1 month in stasis.
Thus the economist is confident that a persistent rise in capital inflow would trigger a monthly price increase for BTC between $10,000 to $15,000. This growth suggests heightened adoption and demand for exposure to BTC through financial products.
Featured image from Adobe Stock, chart from Tradingview.com
