Bitcoin’s recent price action looks like a serious test of the $70,000 level. It briefly rose to $74,000 before quickly falling to $60,000.
At press time, it had recovered slightly and was trading around $70,654, up about 3% in 24 hours. This suggests that buyers may try to turn $70,000 into a strong support level rather than allowing it to break again.
But there is a bigger story beyond Bitcoin’s ups and downs. As BTC moves sideways, attention may be slowly shifting towards altcoins. Simply put, the focus is no longer just on whether Bitcoin (BTC) will recover, but whether stability around $70,000 can trigger the next wave of growth in altcoins.
Analysts support altcoin season
For example an account X noted,
Altcoins will experience the biggest rise next week.
Another analyst echoed similar sentiments, adding:
Although signs point to a possibility altcoin In the season, the current volatility is mainly due to global tensions, not crypto issues. as Zach Humphries notedThe drop below $70,000 was a reflection of market fear stemming from geopolitical uncertainty.
Interestingly, Bitcoin still outperformed gold, silver, and stocks; this is a sign that this is viewed as a hedging tool. Therefore, while analysts see the $65,000-$70,000 range as a value zone, they are cautious and waiting for better entry points.
As Humphries adds,
I think we’re still in the middle of a bear market.
On the contrary, analysts who support altcoins believe that this cycle is very similar to what happened in 2021.
based on previous market trendsIt may still be early in the accumulation phase – only in about 123 days. This phase usually lasts about 240 days.
This means the market may still be in the construction phase before a stronger upward move begins. If history repeats itself, we may soon move from sideways movement to steady growth, where major cryptocurrencies will begin to explode.
Are on-chain metrics positive?
There’s a paradox that investors should watch closely.
Consider this: the Altcoin Season Index had a reading of 49, very close to the signal of an altcoin rally.
But at the same time, Bitcoin’s dominance continued highabout 60%.
Simply put, this means people are talking about altcoins and expecting them to rise. But most of the money is still in Bitcoin because investors see it as a safer option.
This needs to change for a real altcoin season to begin. Until this happens, the market will remain in the waiting phase.
Additionally, activity levels on major networks such as Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) have either remained stable or are declining. Ethereum There was a sudden increase in active users around March 19, but it did not last long. This suggests that this may have been caused by short-term events.
solanaIts activity gradually decreases dogecoin We’re also seeing less interest from retail investors.
Overall, this implied that the market’s excitement phase was not supported by strong data. Not yet.
Additional bottlenecks in the upcoming subseason
Another issue is where the money flows. Although people are talking about an altcoin season, most trading still occurs on a few major exchanges.
This means liquidity is concentrated in a few places rather than spread throughout the ecosystem.
A clear sign of this is the sharp decline in trading activity. Altcoin volume fallen The figure, which was over $100 billion a few days ago, has fallen to approximately $26.5 billion.
This is a huge decline; It shows that while people are still positive online, most of the money is not actively moving. Simply put, the market has potential but is missing a strong trigger to move higher.
Final Summary
- Bitcoin holding $70,000 is showing strength but is still in a critical testing phase rather than a confirmed breakout.
- Signs of altcoin season are increasing, but the real capital rotation has not started yet.
