Bitcoin worth suffered a flash crash from $100,000 to a low of $91,300 on February 3. Bitcoin has consolidated within the vary between $95,500 and $99,000 for the reason that crash, and altcoins wrestle to achieve as BTC dominance hovers shut to its four-year peak.
Solana (SOL) ecosystem noticed a steep correction in its market capitalization, down to $9.96 billion and erasing over 7% of its worth within the final 24 hours, in accordance to CoinGecko knowledge. Components just like the LIBRA and MELANIA meme coin controversy and alleged hyperlinks to entities that pulled $100 million from the latter have negatively impacted meme cash in Solana. The altcoin market is confronted with the results of declining sentiment and waning demand amongst merchants.
Bitcoin flashcrash set the tone for first half of 2025
Bitcoin worth rally to the $100,000 milestone and its all-time excessive of $109,588 kicked off the 2024 bull market. In 2025, BTC suffered a flashcrash, the most important cryptocurrency slipped to a low of $91,231 on February 3.
Bitcoin has consolidated inside a decent vary between $95,500 and $99,000 as dealer sentiment declines. The crypto market’s response to U.S. macroeconomic developments and U.S. President Donald Trump’s government orders and new appointments inside the administration has induced volatility in Bitcoin and altcoin, in accordance to derivatives market knowledge.
Bitcoin volatility declined from its peak of two.07% on February 6, the final 30-day estimate places it at 1.53%.
A decline in volatility implies a decrease probability of worth swings in Bitcoin. Regardless of the short-term cooling off interval within the crypto market, BTC is unlikely to have hit its cycle high.
Altcoins consolidate as Bitcoin dominance hits four-year peak
The full crypto market capitalization excluding Bitcoin ranges across the $1.19 trillion mark, in accordance to TradingView knowledge. The metric dropped almost 20% in February 2025 till Wednesday, February 19.
Altcoins proceed consolidating as Bitcoin dominance hovers round its four-year peak, nonetheless merchants can hold their eyes peeled for any change within the metric. If Bitcoin dominance drops, capital may rotate into altcoins and utility tokens and pave the best way for an altcoin season.
Bitcoin reigns stagnant on the time of writing, with the 7-day volatility at eight month lows, and 30-day volatility at October 2024 lows. The most important cryptocurrency is at present much less unstable than 37% of high 100 U.S. public corporations. Such a low relative volatility is a uncommon incidence and it was final noticed in October 2023.
Buying and selling quantity throughout exchanges are down to pre-election ranges after vital de-leveraging, altcoins are probably gearing for restoration. Skilled merchants are threat averse as the contango narrows and CME foundation falls to September ranges, in accordance to insights from a K33 research report.
The short-term sentiment amongst merchants is that of warning and institutional holder publicity to crypto has slowed down. A key indicator to watch is the Altcoin Season Index on Blockchaincenter.
Altcoin season is a time interval the place the returns on 75% of the highest 50 altcoins outperform Bitcoin persistently in a 90-day timeframe. To find out whether or not it’s the altcoin season but, merchants use the altcoin season index.
On Wednesday, the index reads 45, on a scale of 0 to 100, which means that it’s not the altcoin season but.
As altcoins consolidate, it might be the best time for sidelined patrons to start accumulation earlier than the following leg up. Tokens like Bittensor (TAO), Pyth Community (PYTH), Ethena (ENA), blue-chip meme cash like Dogecoin (DOGE) and Pepe (PEPE) are at present beneath the typical traded costs and will start their restoration as soon as the altcoin rally resumes.
Greatest altcoins to buy now
The highest three altcoins which are at present within the buy zone and will get better within the subsequent leg of the altcoin rally are Bittensor, Pyth Network and Dogecoin. The next worth charts determine the buy zone, worth goal, positive aspects and the help/ resistance ranges for sidelined patrons to enter a commerce this week.
PYTH has been in a multimonth downward development that began in December 2024, throughout the Bitcoin bull run. The token has been in a decline, down to $0.2031 on the time of writing. Technical indicators on the day by day timeframe, RSI and MACD help a bullish thesis in PYTH and the token may rally 25% to check a key resistance stage inside an imbalance zone, at $0.2548.
A Bitcoin flashcrash or market consolidation may ship PYTH to help on the February 8 low of $0.1739.
Bittensor’s TAO has a number of catalysts like Dynamic TAO improve and the launch of subnet AI tokens, that might drive worth larger within the coming weeks in February 2025. The token may escape of its downward development and shut above the $379 stage, check resistance at $445.
$445 is the higher boundary of a Truthful Worth Hole on the day by day timeframe, a key resistance stage for TAO. A rally to $445 marks 16% positive aspects within the token.
TAO may discover help at $341, the February 9 low for the AI token.
Dogecoin, the most important meme token within the crypto market is at present ranging after a multi-month downward development. A day by day candlestick shut above resistance at $0.30 may break the sample and point out a development reversal within the token.
DOGE’s technical indicators on the day by day chart are supportive of almost 20% positive aspects within the coming weeks, which means the brief time period outlook on the token is bullish. A correction may ship DOGE to check help at $0.21659, as seen within the chart beneath.
Bitcoin worth outlook
Derivatives knowledge from a K33 analysis report reveals that merchants have taken a cautious hands-off strategy on the Chicago Mercantile Alternate (CME) over the previous few weeks. The sentiment amongst derivatives merchants is bearish as premiums proceed to push decrease, whereas open curiosity stays stagnant amidst no vital spike in ETF exercise.
Premiums have been on a transparent downtrend within the months following the results of the U.S. Presidential election in November 2024. BTC’s preliminary post-Trump election rally pushed the asset above $100,000. Nevertheless, as the market adjusts to bulletins and macro developments, merchants exhibit rising threat aversion.
Derivatives merchants are much less motivated to add lengthy publicity to Bitcoin, exercise ranges general stay shallow, and open curiosity stays flat all through the week amidst weak futures ETF flows.
As Bitcoin consolidates and trades in a range-bound method, the query of whether or not the bull run is over looms amongst market contributors.
Nick Forster, Founder at Derive.xyz says volatility forecasts an increase in BTC worth. Forster informed Crypto.information in an unique interview:
“At the moment, BTC’s 7-day implied volatility (IV) is hovering round 40%, whereas 6-month volatility sits at 54%. Whereas ETH’s 7-day IV is considerably larger at 66%, matching its 6-month volatility.
On the floor, this means a interval of relative calm earlier than bigger worth actions in Q3. Nevertheless, the notable discrepancy between BTC and ETH volatility alerts that BTC could also be undervalued, contemplating its 2-year excessive in market dominance (60.7%), growing momentum for BTC strategic reserves, like Texas’ symbolic plans, and main geopolitical developments such as the decision of the Israeli/Palestinian battle and progress in Ukraine peace talks.
The prospect of BTC hitting above $115K on the finish of this quarter is down to 12% from 17% final week.”
On the time of writing Bitcoin trades at $95,689.
Disclosure: This text doesn’t characterize funding recommendation. The content material and supplies featured on this web page are for instructional functions solely.
