- Bitcoin consolidates within a tight range, with analysts predicting a bullish breakout fueled by rising spot interest and market strength.
- BTC dominance nearing 60% could unlock altcoin rally opportunities, with current range lows offering favorable accumulation points.
- RSI recovery and key liquidity zones signal bullish momentum, while traders anticipate a potential breakout by February.
As investors keep an eye on important market factors, Bitcoin (BTC) is still in a consolidation period and trades in a narrow range. Before altcoins may start a long-term rally again, BTC’s dominance (BTC.D) needs to go close to 60%, according to analyst Astronomer. This cautious sentiment reflects the lack of a daily close above the previous all-time high (ATH), signaling ongoing market indecision.
Current Market Dynamics
BTC’s price continues to range between support and resistance levels. The market has struggled to sustain momentum despite numerous attempts to break through the range high in recent price action. The analyst’s long-term prognosis remains bullish in spite of these swings. Key indicators, such as rising spot interest and controlled fear-driven drops, suggest underlying market strength.
Additionally, BTC’s dominance remains a critical factor influencing altcoin performance. A move closer to 60% dominance is anticipated to create buying opportunities in altcoins, especially during local range lows. The analyst predicts further consolidation through January, with a potential breakout in February as bullish signals align.
Source: Astronomer
Key Technical Insights
The market recently tested an Astro Block resistance zone, characterized by choppy consolidation and concentrated liquidity beneath this level. Buying interest emerged near the H6 demand zone, which has repeatedly absorbed selling pressure. This area is now considered a key level for accumulation.
Besides, the Relative Strength Index (RSI) has shown recovery after initial declines, reflecting steady underlying market strength. Meanwhile, a CME gap-fill event highlighted crucial liquidity levels, further stabilizing the market’s mid-range activity. Consequently, traders remain focused on mid-range price actions, expecting a breakout to define the next direction.
Altcoin Strategy and Outlook
The analyst’s focus remains on positioning within altcoins as BTC dominance approaches key levels. While BTC ranges, altcoin markets present opportunities near local range lows. A breakout in BTC could lead to a rapid rise in BTC.D, creating favorable altcoin entries.
However, if BTC dominance consolidates instead of breaking out, traders may observe extended altcoin accumulation phases. The forecast suggests a final push in the ongoing BTC-led bull market, aligning with the overall strategy.
