Bitcoin remains in a descending range, lacking clear direction, while some altcoins are quietly gaining strength. As the market consolidates, these smaller assets may signal early upward moves before Bitcoin breaks out.
Key Resistance: $90,588 and the Descending Trendline
Analyst Kamile Uray notes that key levels on the daily chart remain unchanged, with focus on the $90,588 level and a descending blue trendline. Unless Bitcoin closes above these levels, the current decline may persist. Any rallies below this trendline are seen as corrections, not a trend reversal.
The first support zone to watch is between $83,822 and $82,477. A daily close below $82,477 would suggest the downtrend is continuing and could lead toward the $74,496–$71,237 zone, which is considered a strong support area where buyers might emerge. A clear reversal confirmation is needed before expecting any significant upward move. Once confirmed, a rally toward the blue descending trendline could follow, testing resistance along the way.
For a decisive resumption of the uptrend, Bitcoin would need to close above $90,588 and break the descending resistance. A daily close above $94,130 would confirm the trendline has been broken, potentially signaling a shift to sustained bullish momentum.
Lower Time Frame Shows Less Impulse, But Structure Holds
Analyst The Penguin observes that lower time frame (LTF) moves show slightly less impulsive action, though the overall wave count remains unchanged. Recent LTF price action appears more like noise and doesn’t alter the broader analysis, with confidence in a leading diagonal pattern for wave 1 still intact.
Setting aside Elliott Wave theory and relying on standard technical analysis, Bitcoin is clearly respecting a defined range. A minor pullback toward the 0.886 Fibonacci level marked on the chart is being watched as a potential entry point. Bullish confirmation would come if Bitcoin closes and holds above $90,500, which would invalidate the current bearish scenario and signal potential for a more sustained uptrend. Until then, short-term fluctuations are considered normal noise, especially with the yearly open approaching.
On the altcoin side, momentum appears to be holding, suggesting potential upside. Outperformance is already visible in assets like XPL, indicating that while Bitcoin consolidates, some altcoins are beginning to push higher.
Frequently Asked Questions
Frequently Asked Questions About Bitcoins Downtrend Altcoin Strength
Beginner Questions
Q What does it mean that Bitcoin is in a downward trend
A It means Bitcoins price has been consistently making lower highs and lower lows over a period of time In simple terms its overall price direction is down
Q What are alternative cryptocurrencies or altcoins
A Altcoins are any cryptocurrencies other than Bitcoin Examples include Ethereum Solana and Cardano
Q Why would altcoins show strength when Bitcoin is falling
A Sometimes money rotates out of Bitcoin and into smaller riskier altcoins as traders search for higher returns It can also mean specific projects in the altcoin space are gaining attention based on their own developments
Q Is this a good time to buy altcoins
A It can be a higherrisk higherreward opportunity While some altcoins may be gaining the overall market is often still tied to Bitcoins sentiment Always do your own research and never invest more than you can afford to lose
Q How can I tell if an altcoin is genuinely strong or just pumping temporarily
A Look for strength backed by real developments like major protocol upgrades growing user numbers or significant partnerships not just social media hype
Intermediate Advanced Questions
Q What is altcoin season and is this the start of one
A Altcoin season refers to a period when altcoins significantly outperform Bitcoin Early signs can include rising altcoin dominance and sustained strength across various altcoin sectors not just a few coins
Q Could Bitcoins downtrend drag altcoins back down eventually
A Yes absolutely This is called a marketwide correlation If Bitcoin experiences a sharp severe drop it typically pulls down the entire crypto market even altcoins showing relative strength
Q What trading strategies do people use during this kind of market
A Common strategies include
Rotation Moving some funds from Bitcoin into stronger altcoins
Sector Focus Targeting specific altcoin sectors that are leading the strength