Bitcoin double top resistance at $100,000 signals altcoin interest
Bitcoin has twice failed to break above $100,000
Bitcoin's price action is grappling with critical resistance at $100,000, a level that aligns with the 50% Fibonacci retracement.
Recent rejections at this psychological milestone have led to a 5% drop to $95,000, sparking discussions on whether further declines could follow. Meanwhile, traders are beginning to shift focus toward altcoins, eyeing their higher risk-reward potential as Bitcoin dominance hovers near 60%.
BTC price dynamics (November-December 2024). Source: TradingView
For over two weeks, Bitcoin has twice failed to break above $100,000, forming a double top pattern, a bearish indicator suggesting resistance strength. The second rejection was Bitcoin sharp decline on December 26th to $95,000, although it has since inched back to $96,000.
Traders like Dyme and institutional voices are noting a potential shift in strategy. Dyme, a pseudonymous crypto analyst, advised their 64,400 followers that Bitcoin’s current risk-reward profile is less compelling than that of altcoins, suggesting the time to dollar-cost-average (DCA) into Bitcoin may be over for the next 1.5 years. According to a Kraken survey, 59% of crypto investors still use the DCA strategy, making this shift a notable development in sentiment.
Dyme anticipates a "silly" altcoin market in 2025, highlighting assets like Dogecoin and Solana as potential outperformers. Echoing these views, Soap Capital’s CEO Tyler Durdan sees the next Bitcoin rally as potentially the last major cycle, while Adam Cochran of Cinnaeamhain Ventures foresees liquidity flowing into altcoins due to regulatory clarity and new launches.
Bitcoin price sees 50-Day EMA support despite bearish RSI
On the technical front, indicators are tilting bearish, including the daily Relative Strength Index (RSI) below 50, indicating waning momentum but not yet oversold conditions. The 50-day EMA at $93,200 now serves as a pivotal near-term support level. A break below this could trigger broader declines. Due to Bitcoin technical and sentiment-driven challenges, holders may need to brace for potential bearish action, particularly if the price breaks below $93,200.
Bitcoin futures monthly contracts traded at a 12% premium reflect strong demand for leveraged long positions. It price tested the critical $100,000 psychological barrier, aligning with the 50% Fibonacci retracement level.
