Bitcoin Price Above $100K, But Why Is The Market Still Uncertain?

Bitcoin (BTC) price climbed above the $100,000 mark, yet market sentiment remains muted. Despite expectations for a strong rally, investors seem cautious.

Analysts point to key market factors that explain why excitement is lacking this time.

Bitcoin Price Rises, but Altcoins Struggle to Rally

Bitcoin recovered to the six-figure mark from its previous low below $100,000. The cryptocurrency maintains its current trading value at $102,796 after a 0.5% rise since yesterday.

The current market is demonstrating less interest compared to the earlier cycles.

Many investors anticipated price metrics to rise dramatically after America elected Donald Trump to take office on January 20.

The expected market surge failed to appear, so analysts began investigating the market’s restraining factors.

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Altcoins fail to sustain rallies like Bitcoin because they do not participate in Bitcoin’s price surge, which has historically generated broad market momentum.

Benjamin Cowen, CEO of Into The Cryptoverse, identified a fundamental flaw within market patterns.

From 2021 onwards, the Advance-Decline Index (ADI) of the top 100 cryptocurrencies points towards negative market trends.

This is an opposing movement compared to previous bull market patterns, as the ADI indicator reveals diminished growth following widespread price rises during those periods.

ADI Decline Signals Weakness in Altcoin Market

The ADI continues to decline, reflecting weaker performances among altcoins, commonly held by market participants anticipating an altcoin season.

Despite Bitcoin price rise, the increase hasn’t been sufficient to halt the downward trend of the ADI indicator.

Altcoins struggle against Bitcoin’s dominance, which results in decreasing market enthusiasm.

Throughout the 2020-2021 Bitcoin bull market, altcoins followed Bitcoin’s growth trajectory, which drove up the ADI.

Bitcoin’s success fails to create market euphoria because altcoins struggle to maintain strength during this cycle.

Market analyst Khan observed that investors who entered the market in 2021 remain unprofitable.

Bitcoin’s price strength stands out compared to most altcoins, which continue to hover below their previous highs.

The Ethereum price remains stagnant between $3,000 despite unsuccessful attempts to gain a notable upward trend.

Khan provided market information about the top 100 cryptocurrencies ranked by market capitalization.

Altcoins placed 50–100 in rankings and suffered an average decline of 24% from their peak values.

Deep within the crypto market, the next 50 altcoins show roughly 64% declines, which validates the stagnant market feeling.

Van de Poppe Sees Market Rebound Ahead

Khan also pointed out a typical pattern in the crypto space. Retail traders usually jump onto trends after they have begun in response to widespread hype instead of seizing actual investment opportunities.

When mainstream attention validates a sector, echos obtained period early returns. To validate his claim, he used data from Dune Analytics and CN Research.

According to recent reports, meme coin investments have led to profits for just a few traders.

The lack of profitability among most investors leads to whether these participants approach trading with strategy or are merely gambling their money.

Market veteran Michael van de Poppe keeps his optimism regarding Bitcoin price strong despite sweeping uncertainty.

Van de Poppe concludes that Bitcoin’s staying above $100,000 support represents a positive market development. Van de Poppe expects Bitcoin to reach new record prices after surpassing $104,000.

According to Van de Poppe, negative sentiment is an important market turning point. He believes markets tend to move upwards when trader sentiment shows widespread expectations of declines.

According to van de Poppe, alternative coins will build up their strength throughout the upcoming two to four weeks, enough to drive the subsequent major market movement.

Bitcoin last saw a price fall beneath $100,000 point during a market downturn.

According to van de Poppe, the current market dynamics suggest an end-of-shakeout before another significant trend resumes. Investors should hold their altcoin assets because they expect an upcoming market recovery.