The cryptocurrency market shows signs of a potential inflection point, with Bitcoin appearing to find support. While overall sentiment remains cautious, strong inflows into spot Bitcoin ETFs and controlled derivatives activity suggest bulls may be gaining an upper hand. Analysts highlight that any meaningful market rebound is likely to be led by Bitcoin, as altcoin momentum remains capped.
The crypto market’s mood is precarious as the Fear & Greed Index remains near the “fear” zone. Bulls must step in to prevent Bitcoin from sliding back toward extreme fear.
Bitcoin dominance is facing resistance just under 60%, but the Altcoin Season Index holds steady. This indicates confidence in BTC persists while rotational flows into alternative cryptocurrencies stay limited.
On derivatives markets, long positions comprised 66% of the $250 million in liquidations. However, Open Interest remains under control, suggesting leverage is not excessive.
Investors are leaning into utility plays, with Decred leading 24-hour gains. The divergence in ETF flows is stark, as strong inflows of $254 million went to Bitcoin ETFs compared to just $6.6 million for Ethereum.
Bitcoin trading around $65,000 is beginning to feel like a possible market bottom. Analysts warn that upcoming regulatory clarity could act “either as a catalyst or as a bull trap.”
The current zone is a high-volatility battlefield between bulls and bears. Current capital flows suggest bulls are slowly gaining the upper hand, with a potential short squeeze on the horizon.
