Bitcoin hovers at approximately $114,000, maintaining gains since mid-August highs. The cryptocurrency has been trading in the range of $104,000 and $114,000 in the last two days. The mentioned stability follows weeks of intensifying pressure that pushed prices to new all-time highs. Analysts predict this consolidation to persist until significant macroeconomic landmarks offer more clarity.
Market experts note that the support is solid at the $104,000 level, and the resistance is only increasing above $114,000. The range of closure suggests that the traders are holding back and waiting for the new signals to make the next move.
Altcoin Season Gains Momentum as Bitcoin Dominance Fades
While Bitcoin is maintaining its hold, the altcoins are gaining traction. The Altcoin Season Index had registered 76 recently and hence the investor sentiment is turning away from Bitcoin to lower-cap cryptos. That typically occurs when 75% or more of the top 50 altcoins are outperforming Bitcoin for 90 days.
Bitcoin market leadership has otherwise receded, leaving space for alternative assets like Ethereum and Dogecoin to attract greater capital. Dogecoin, for example, is up nearly 10% relative to Bitcoin in under fortnightly trading. Ethereum, while not revealing explosive positive direction, has recorded steady gains alongside other high-beta altcoins.
Macroeconomic Outlook Adds Uncertainty
Investors are looking intently at American economic indicators for a signal on what the Federal Reserve will do next. Inflation remains an issue, and the next Consumer Price Index (CPI) reading will let us know more. A below-expected CPI reading will increase rate cuts, which is bullish for risk assets like crypto.
Latest labor market information, such as speeding up unemployment and decelerating employment growth, further boosted expectations of softening monetary conditions. Market players now look towards prospective rate cuts by the end of the year. How quickly and when they would happen is a mystery, which brings uncertainty to crypto markets.
Others caution that while expectations of continued accommodative monetary policy have fueled peak crypto prices, deviation from such expectations will bring about apocalyptic corrections.
Market Outlook
The steady influx of money into altcoins remains a diversification pattern and risk-taking signal by the traders who prefer to close out of their trades as soon as possible in profits. With the central bank announcement and inflation report pending, the next few weeks will decide the fate of Bitcoin along with the rest of the crypto world.
