Bitcoin Trading Range
Bitcoin (BTC) has been trading in a tight range of $91,000 to $102,000 for the past 81 days, with traders waiting for clearer macroeconomic signals before making significant moves, as reported by Bitfinex.
Little Directional Momentum
The latest Alpha report from the firm highlighted that despite escalating global geopolitical tensions, BTC has shown little directional momentum. Its weekly performance only saw a modest 4.3% peak-to-trough movement, closing with a slight 0.82% gain.
Impact on Altcoins
- Altcoins have struggled amid uncertainty during this period of stagnation.
- The broader altcoin market has significantly underperformed Bitcoin, with meme coins like PEPE experiencing dramatic losses, down by 46.4% over the past month.
Bitcoin’s price stability suggests a shift of capital flows away from altcoins and into the leading cryptocurrency, further solidifying its position as the dominant digital asset.
Altcoins Market Decline
The global altcoin market cap has plummeted by $234 billion in just 14 days, while Bitcoin has remained relatively steady, indicating a growing divergence between the flagship crypto and the rest of the market.
This trend showcases Bitcoin’s increasing correlation with macroeconomic conditions and its maturation as a risk asset, according to the report.
Inter-Exchange Flow Pulse
The Inter-Exchange Flow Pulse (IFP) turned bearish on Feb. 15 for the first time since June 2024, indicating that traders might be reducing their risk exposure, potentially leading to further downside pressure. However, the IFP remains above its 90-day moving average, leaving room for a potential market rebound.
Realized Losses
Despite the choppy price action, Bitcoin investors have experienced some of the largest realized losses during the current bull market cycle.
Short-term holders (STHs) have seen $520 million in losses, similar to levels seen in previous market pullbacks. On the other hand, Long-term holders (LTHs) have maintained their positions, suggesting that Bitcoin’s consolidation phase is a natural correction within an ongoing bull market.
While bullish catalysts like Abu Dhabi’s investment in BlackRock’s Bitcoin exchange-traded fund (ETF) have offered support, traders remain cautious.
