Bitcoin Holds at 65K as Altcoin Season Indicator Flips Neutral
Bitcoin’s price held strong at $65k, effectively resetting a crucial altcoin season indicator to a “neutral” position, which boosts the prospects for continued recovery. Blockchain analytics firm Swissblock reports that the Alts Impulse signal has shifted from negative to neutral. This shift indicates that a potential transition to “positive” might spark a brief altcoin season. “Should we witness a sharp spike in positive impulse—triggering a decisive bullish crossover—it would provide a precise signal for an upward move in the short term.”
The signal turned negative in February, but recent developments suggest a potential easing trend. This development sparked optimism for a rapid rebound in the altcoin market, which has been grappling with significant downturns after Bitcoin’s prolonged drop into the sub-$60K territory. Thus, the question arises – Are there additional data sets that correspond with a possible altcoin rally? The Stablecoin Exchange Inflow, an essential indicator for evaluating purchasing strength, has exhibited a rising trajectory since January. The figure skyrocketed to $4 billion in February, highlighting the increased capital influx into the market, which bolstered the relief bounce observed earlier in the month. Since February 10, the metric has experienced a slight decline, dropping from $4.3 billion to $3.7 billion. The decline was not as drastic when juxtaposed with the recovery observed since the start of the year. As a result, the ongoing recovery of the metric may bolster the anticipated altcoin rally.
Nonetheless, a prolonged downturn would indicate restricted capital inflows, maintaining the broader market’s vulnerability. The ETH/BTC ratio, a crucial indicator for tracking altcoin seasons, has seen a significant rebound of 3.5% in the past few days. It indicated that ETH has outperformed BTC – A trend that has consistently characterized altcoin market recoveries. If the ratio breaks out to the upside from its February range, we could be on the verge of a potentially strong altcoin season ahead. Zcash has emerged as a frontrunner in the latest market rally, demonstrating a remarkable 24% increase in value within the last 24 hours, solidifying its position among the top 20 cryptocurrencies by market capitalization. Hedera Hashgraph and Bitcoin Cash both experienced a notable 10% rebound, while Solana recorded an 8% increase during the same timeframe. Ethereum saw a significant 6% surge, effectively regaining the $2,000 threshold. The broader altcoin market recovery appears poised for continuation, as indicated by the Alt Impulse signal. However, any reversal in Bitcoin’s price could temper the enthusiasm.
Sources reveal that significant hedging and positioning are taking place as traders brace for a potential downward trend. The recent uptick in bearish positioning has surged by almost 12% in the last month, indicating that the sideways movement above $60k is fostering a sense of skepticism among traders. Should BTC experience a decline, it is probable that the altcoin market will mirror that movement. The altcoin market has transitioned to a “neutral” stance following a period of negative momentum, sparking optimism for a potential short-term rally. Nonetheless, the optimistic perspective may be at risk if BTC experiences a downturn or if capital inflows into the market come to a halt.
