Bitcoin (BTC) Consolidation Weighs on Altcoin Market, But Bull Cycle Remains Intact

Bitcoin (BTC) is still above the 200-week and 200-day moving averages, signaling a bullish condition for the cryptocurrency.

Bitcoin (CRYPTO: BTC) price action still trades above the 200-week and 200-day moving averages, signaling a bullish condition for the cryptocurrency.

In his latest podcast, a renowned crypto analyst highlighted critical data that describes the market conditions and supports the prevailing bullish narrative despite dwindling sentiments.

It’s crucial to note that Bitcoin’s consolidation since mid-January has impacted the altcoin market negatively and dampened users’ expectations of a bull run.

The flagship crypto slipped into a sideways trend after setting an all-time high of $109,356. BTC ranged between $91,000 and $100,000 in February, with a market volume that suggested a lack of interest from crypto investors.

Despite the slight negativity in crypto market sentiment, technical factors suggest the bull cycle is intact. For instance, the Relative Strength Index (RSI) on BItcoin’s monthly chart has not triggered a top. The indicator suggests that Bitcoin is not in the overbought region and still retains bullish momentum.

In the meantime, the crypto analyst spotted a breakdown in the Dollar Currency Index (DXY), a development he noted to be good for risk assets, including cryptocurrencies.

In addition, global liquidity continues to rebound after decreasing towards the end of 2024. The analyst considers global liquidity a crucial indicator because of the historical trend of risk assets following its direction.

In predicting the market, the crypto analyst thinks the crypto market will experience a bounce soon. He targets the period between February ending and the beginning of March for a trend reversal and a potential upsurge in the cryptocurrency market.

However, he does not discard the possibility of Bitcoin’s price dropping lower before the bounce.

In summary, the crypto analyst thinks the prevailing negative sentiment across the crypto market is a good sign for the bull market. According to him, such sentiments shake out weak hands and wipe out liquidity, resetting the market to keep going higher.

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