- With BTC preserving bullish potential above $98K integrity, there’s also a structural aspect for a broader market to stabilize.
- Bitcoin dominance shrinks from 65% to 62% with 37 out of the 57 altcoins outperforming BTC, signaling an influx of capital.
- Price corrections in the BTC and altcoins are calling for portfolio rebalancing, with smaller-cap tokens gaining traction before June.
Bitcoin’s recent price movement has triggered a wave of corrections across the broader cryptocurrency market, with altcoins also facing downside pressure. The market’s pullback is being closely monitored and according to analyst CryptoMichNL, he suggests that despite the short-term volatility, Bitcoin’s ability to stay above the $98,000 support level is considered a critical factor in maintaining broader market stability.
Moreover, such corrections are not uncommon in digital asset markets, especially after extended periods of upward momentum. Bitcoin had experienced temporary pullbacks in the past, before continuing upward trend movements. This pattern is also often replicated in altcoin performance, as many tokens respond accordingly to the direction of Bitcoin.
Price Action and Support-Resistance Patterns
At press time, Bitcoin saw a minor price correction as the asset pulled back to $101,908 after a 1.6% intraday decline.The dip pushed BTC slightly above its newly established support of $101,782, a level that market players are carefully observing. However, traders observe that the overall market outlook is not harmed as long as the crypto stays above the $98,000 mark.
If price action dismisses this level, the ascending triangle formation may not hold, thus exposing the market to more downside risk correction at 85K-90K. Meanwhile, on the other side, the resistance remains equally firm at 150K or more. However, until then the technical outlook is unchanged and the short term price actions will most likely revolve around the current structure.
Altcoin Market Reacts to Bitcoin Weakness
Altcoins usually follow Bitcoin’s lead, and the recent drop has caused significant drops on some popular pairs of altcoins. In spite of this, a number of market analysts consider the pullback as some of the opportunities. In one week, Bitcoin’s market dominance has declined from 65% to 62%, leading to speculation that an altcoin cycle might be emerging.
According to analyst Joao Wedson, 37 out of 57 tracked altcoins are currently outperforming Bitcoin, pointing to a possible shift in investor sentiment. As the month of June draws closer, momentum seems to tilt towards smaller-cap tokens. Due to the high activity in the crypto market, traders are aggressively rebalancing portfolios to profit from further capital rotation to the altcoin sector.
While Bitcoin has stalled at important levels, altcoins could be set for more relative gains as traders continue monitoring price action closely, with emphasis placed on whether the $98K level holds through ongoing volatility.
