Crypto Market Report: Market Rotation yet?

We predicted a long consolidation for Bitcoin at this range, and it seems BTC is following that plan.

Price levels of the last TA Report are still relevant. So, we ended the price analysis with a straightforward statement. Let’s explore more about this crypto market.

Altcoins Stagnate as Bitcoin Holds Steady

This means BTC is likely to enter a long consolidation at this range. When BTC consolidates, alts outperform BTC. As BTC consolidates, alts should outperform BTC, but alts are not performing at all. Most of the alts are stuck in a straight line price action. Why?

• Altcoin volume has been consistently low since January 2025. Bitcoin volume is stable. This is bullish for Bitcoin.
• Open Interest of Bitcoin is going up since March 2025. Also, open interest for major alts is going up. This is bullish for Bitcoin and alts.

• This is an anomaly. Let’s explore why by taking ETH as an example.

Usually, when open interest increases, price pumps. When the open interest and volume are increasing, we are in an active bull market. However, for ETH, open interest is at an all-time high. Even the volume for ETH is good, especially since May. Still, ETH is not pumping well.

Why are Altcoins Lagging?

We have explained the role of Bitcoin dominance in previous reports. When the dominance is strong, alts just mimic BTC. There is another reason.

Bitcoin usually ends its bull run towards the second year of halving. It then loses momentum. Ever since the ETF, Bitcoin has been treated similarly to gold. Each dip is consistently bought, and each pump is sustained by even more buys. This liquidity is something the crypto industry has never seen before.

Traditional money is flowing into Bitcoin alone. Since BTC is bullish, the altcoins have no other option but to stay bullish, yet underperform. Take a look at the liquidation chart below.

Even the smallest dip last week resulted in such a big liquidation event. This means the majority of traders are long on Bitcoin. We expect Bitcoin to consolidate in the short term.

Fear and Greed index has entered the Greed territory again. This means we can expect some relief rallies for alts in the coming week.

Where is Bitcoin headed?

Bitcoin is still in the consolidation box. It has absorbed liquidity below $100k and is currently on the way to retest the $112k resistance (ATH). If BTC can flip the ATH, we can expect it to move to $118k, and a clean retest to $102k. If BTC can not flip the previous ATH, it can continue to consolidate in the $100-$110k zone. If the consolidation goes on, we may see a good altcoin pump over the weekend.

Our target for alts remains the same. The Elon Musk – Donald Trump talks and ‘fight’ appears to be a distraction. Whales are eager to capitalize on such distractions which explains the rise in open interest and perpetual market volume.

For the first time since the US elections, Ethereum is seeing more asset inflows than BTC. Last week alone, ETH saw $296M in inflows, while BTC saw $56M in outflows. This suggests a capital rotation might happen after some consolidation.

Disclaimer

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