Bitcoin (BTC) Price Analysis: Trendline Support To Determine Next Phase, Altcoin Season Coming

With bearish pressure mounting in Bitcoin's market dynamics, the flagship asset is likely to experience further price decline in the upcoming days.

As bearish pressure continues to build up in the Bitcoin market, the flagship asset is expected to experience further price decreases in the coming days. However, several support ranges are acting as a barrier to recent negative price movements, preventing an extended correction.

A critical trendline support, drawn by crypto expert and trader Rekt Capital, serves as the primary defense against further losses. This support is crucial in determining Bitcoin’s next phase amid heightened market volatility.

According to Rekt Capital, holding this trendline support could pave the way for BTC to gain momentum and rebound toward higher levels. However, if this support fails to hold, BTC risks facing a deeper correction.

Examining price movements, Rekt Capital highlights that BTC is struggling to maintain the $101,000 range low, indicated by the black line on his chart. At the same time, it continues to retest a blue diagonal line at the $99,158 level as support.

This blue diagonal trendline is significant as it may prevent further price decreases into the lower $90,000s. However, if support at this trendline fails to hold, it could lead to speculations of a bear season within the community.

Despite experiencing a substantial negative move following a broader market crash, Bitcoin continues to lead the crypto market with increasing dominance. This trend is evident even as BTC faces price fluctuations.

As BTC's dominance rises, it suggests that investors are prioritizing the asset during periods of volatility. This observation leads Rekt Capital to announce that “Bitcoin season” is still in effect, indicating that traders are seeking stability in BTC during unfavorable market conditions.

While BTC maintains its market leadership, Rekt Capital anticipates a shift in the market that will ultimately favor altcoins, signaling the start of the highly anticipated altcoin season. In the meantime, he advises investors and traders to exercise patience, expressing his confidence in an impending altcoin season.

In other news, massive funds are flowing into BTC to bolster a price spike. According to network economist and author Timothy Peterson, capital inflows have reached an all-time high, exceeding $40 billion.

Data reveals that the monthly capital投入 for Bitcoin spot ETFs has reached approximately $5 billion since October. Notably, the exchange product net fund flows resumed its growth after a 1-month stasis.

As a result, the economist anticipates that a continuous increase in capital inflow will contribute to a monthly price increase for BTC in the range of $10,000 to $15,000. This growth signifies heightened adoption and demand for exposure to BTC through financial products.