Bitcoin price rises by 2% to $108,000 as political tensions decrease

Bitcoin has made a remarkable comeback after passing the $108,000 mark, rebounding from a weekend of volatility linked to geopolitical tensions. The positive movement in Bitcoin’s price has been supported by a decrease in geopolitical concerns, allowing the cryptocurrency to regain its bullish momentum. With the Fear and Greed Index signaling a balanced market sentiment, Bitcoin has stayed steady at around $107,000 before its recent climb.

While Bitcoin has fared well in recent days, altcoins have had a more mixed performance. Ethereum, for example, has struggled to keep up with Bitcoin’s gains, experiencing more significant pullbacks. Other types of altcoins have seen varying results, with some showing signs of recovery while others are lagging behind. This difference underscores the ongoing challenge for altcoins to match Bitcoin’s performance, as the market anticipates the possibility of an “altcoin season” where these digital assets might experience a significant surge.

Investors have been buying into Bitcoin near its all-time high for a while now, but the same can’t be said for altcoins. Historically, as BTC nears its peak, liquidity usually flows into altcoins, pushing them toward new highs. Lately, it has been observed that the entry into altcoins has been low, indicating a potential undervaluation in prices. As altcoins continue to weaken compared to BTC, it could signal the conclusion of this phase.

According to an analyst who had previously warned about market movements in April, significant changes could be on the horizon. While analysts make decisions based on various indicators, their predictions can sometimes be misleading. Looking at different perspectives can provide value for investors. AskCryptoWealth recently stated, “Previously, I shared the VIX chart which was followed by BTC surging from $75,000. The leading cryptocurrency has made its move, now it’s altcoins’ time.”

The primary altcoin based on market capitalization, ETH, has not yet reclaimed $2,500 and remains around $2,450. Despite gaining an opportunity with the China agreement just before escalating tensions with Iran, unexpected developments often disrupt planned events. Crypto Lord pointed out the upsurge in ETH short positions, a strong indicator of previous surges. “ETH short positions have hit a new all-time high. Interestingly, the last time this occurred, ETH gained 120% within four weeks. Bears never seem to learn.”

Another crucial aspect impacting altcoins is the Bitcoin market dominance chart. Poppe mentioned a potential reversal indicated by a strong downtrend, resembling the short-lived altcoin rally in November 2024. “The Bitcoin dominance chart hints at a likely short-term reversal. Why? A significant downtrend implies we’re nearing a peak. This phenomenon last occurred in November 2024, during the final rise in #Altcoins. Is this definite? Not yet.”

The recent market movements have also been influenced by broader trends. Bitcoin has disconnected from U.S. stocks and showed sidewards movement in the range of $106,000 to $108,000. This consolidation phase suggests cautious investors monitoring the market for further developments, with a neutral market sentiment prevailing.

Analysts have forecasted that Bitcoin could escalate to $300,000 or more in the final wave of a powerful Elliott Wave cycle. Drawing from the parabolic pattern observed in Bitcoin’s price movements, substantial gains may be on the horizon. However, this remains a forecast and not an absolute certainty.

The recent price spike has been accompanied by a notable rise in the number of Bitcoin wallets holding 10 BTC or more. This upward trend could imply that large investors, known as “whales,” are accumulating Bitcoin in hopes of further price surges. The actions of these whales play a crucial role in the market, potentially influencing price movements.

The surge in Bitcoin beyond $108,000 symbolizes a positive shift in market sentiment, bolstered by diminishing geopolitical concerns and an even market outlook. While altcoins are still awaiting a significant rally, Bitcoin’s performance remains a crucial benchmark for the market’s overall trend. The behavior of large investors and the predicted likelihood of further price increases bring an element of unpredictability and dynamism to the market.