- Bitcoin’s death cross, historically bearish, has often marked market bottoms, leading to rallies exceeding 100%.
- Altcoins may see a 20–30% short squeeze as Bitcoin dominance declines, signaling potential gains in the coming weeks.
- Bitcoin must hold key support and break $88K resistance to confirm a strong bullish trend and boost market confidence.
Bitcoin is having a small bounce, and altcoins are expected to follow as Bitcoin dominance declines. According to analyst Sheldon The Sniper, market sentiment is highly negative, but history suggests that such conditions often precede major price surges.
A key technical factor to watch is the “death cross,” a historically bearish signal that has, in the past, marked market bottoms before major rallies. The market is also eyeing Bitcoin’s key resistance at $88,000, a level that, if breached, could lead to another bullish run.
Altcoins, which have struggled in recent weeks, may see a fast recovery if Bitcoin dominance continues its downward trend. The market is at a crucial point, with traders looking for a higher low to confirm a long-term reversal.
Bitcoin’s Technicals and the Death Cross Impact
Bitcoin is currently testing key support levels, with the need to form a higher low that could confirm a sustained recovery. Historically, when Bitcoin maintains support at crucial moving averages, the market tends to see strong upward movements.
One of the most discussed indicators is the “death cross,” which occurs when the 50-day moving average crosses below the 200-day moving average. While typically viewed as a bearish signal, past occurrences of this pattern have often marked the end of downtrends.
The last few times Bitcoin experienced a death cross, the market bottomed shortly after, followed by rallies exceeding 100%. Additionally, Bitcoin’s RSI is currently at oversold levels, supporting the possibility of a market reversal.
Altcoin Market Potential Short Squeeze
Bitcoin’s declining dominance indicates a possible shift in market outlook, potentially benefiting altcoins. Analysts predict a possible short squeeze in altcoins, with expectations of a 20–30% surge.
A short squeeze occurs when traders betting against the market are forced to buy back assets at higher prices, driving prices up rapidly. Historically, when Bitcoin stabilizes after a major correction, altcoins tend to experience a sharp recovery.
The market is in a phase where traders are accumulating, anticipating a breakout. If Bitcoin holds above its key support levels, altcoins could rally in the coming weeks, marking the end of their prolonged bearish trend.
Resistance Levels and Market Sentiment
Bitcoin’s immediate resistance is at $88,000. If it breaks through, the market could witness a strong bullish push, similar to previous cycles. The market is highly volatile. Sentiment remains divided, with some investors turning bearish.
However, the historical pattern suggests that extreme pessimism often aligns with market bottoms. Analysts emphasize the importance of patience and emotional resilience, as previous cycles have shown that the market can shift quickly. With key resistance levels approaching and Bitcoin dominance declining, altcoins could soon see renewed momentum.
