Bitcoin’s price trend has left many on edge. Despite recent gains, the price has slipped below $65,000. Analyst Miles Deutscher said that Bitcoin remains just above the critical $64k level on the weekly chart, indicating potential danger. The analyst also touched how the current altcoin market weakness relative to Bitcoin is a major concern.
He explained that Bitcoin lost the mid-range level at $66.5k, and another significant level at $64k is also in play. For bullish momentum, Bitcoin needs to reclaim the $66.5k level to target the range high around $73k. Currently, Bitcoin appears indecisive, potentially heading lower. The $64k level is a key support; breaking it could lead to a drop to the range low at $60k.
However, on the flip side, Total 3 (excluding Bitcoin and Ethereum) is above the major support level at 560. This level is seen as a decent buy zone for many altcoins if it aligns with individual altcoin charts. Despite the market downturn, some altcoins present buying opportunities, especially during major liquidation cascades for those with a long-term perspective.
The analyst explains that the relative weakness of altcoins compared to Bitcoin can be traced back to market dynamics beginning in 2021. During the 2021 bull run, the crypto market saw an influx of capital, evidenced by the stablecoin index. This led to high investment activity, especially from venture capital (VC) firms, which injected unprecedented amounts of money into the market.
Pointing out to the next reason, he said that with the market showing signs of recovery, a flood of new tokens launched in early 2024. This surge in supply, with over 1 million new tokens created since April 2024, overwhelmed the market despite increased liquidity from the Bitcoin ETF.
The increased token supply diluted the market, causing altcoins to perform poorly. Many major altcoins have struggled to match Bitcoin’s performance, with only a few exceptions managing to outperform Bitcoin since the FTX collapse.
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