Bitcoin Outperforms As Altcoins Struggle: Key Metrics Show A Strong Divergence
After the great volatility last week, Bitcoin has had a tranquil weekend. The price has been unsure, closing five days straight around the $96,500 level. Bulls have lost control and cannot recover the $100,000 level; bears fight to drive the price into lesser demand areas. This tug-of-war emphasizes the uncertainty in the market as no side can clearly guide Bitcoin.
Important numbers provided by Glassnode indicate a fascinating difference in market behavior. While altcoins (apart from Ethereum and stablecoins) peaked earlier, at $1.03 trillion on December 8, Bitcoin's market valuation peaked on January 21 at $2.1 trillion. Altcoins have demonstrated more weakening since these highs, far less than their somewhat better performance from earlier years. This difference points to a change in capital preference as investors choose Bitcoin in these uncertain times.
With Bitcoin's relative resilience amidst market turbulence, investors have been hopeful once again; many believe a possible comeback in the next weeks. To show a more definite trend, the price must, however, go beyond its present range. The market is still in a consolidation period for now, hence traders and experts are constantly observing important levels for the next significant movement.
This capital rotation into Bitcoin shows its durability and supposed safety above the more general crypto market. The market is progressively leaning toward BTC as the major asset while altcoins struggle to find support and BTC keeps its footing above important levels.
But Bitcoin has to go back to the $100K milestone and show a stronger trend above its present range if bulls are to recover complete control. The market stays in a consolidation period until then, hence traders must keep strict attention to important levels in order to spot a possible breakout.