84% of Altcoins in ‘Total Underperformance’, Bitcoin Moving to $58K

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Altcoins have not seen their spring this last cycle and may not for a while longer, as more than 80% of them are underwater. At the same time, Bitcoin continues slipping lower.

To be more precise, CryptoQuant analyst Darkfost found that 84% of altcoins are trading below their 200-day moving average. He opined that “altcoins are arguably the segment that has suffered most throughout this bear market.”

What’s more, every attempt to recover momentum has immediately failed, he adds.

‘State of total underperformance’

Altcoin market capitalization, excluding Ethereum, continues dropping, and a weekly close below the key technical threshold, the 200-day moving average (DMA), has been confirmed.

Darkfost shared a chart that includes all altcoins available for spot trading on Binance, and which also shows that altcoins have stayed highly correlated with Bitcoin’s price through this entire cycle.

So, for almost eight months, 84% Binance-listed altcoins have been sitting in “a state of total underperformance.” This lengthy stagnation period across a significant majority of altcoins is “pushing investors to their limits.”

Moreover, this is the second-longest underperformance streak since 2020, with the longest one lasting for ten months during the last bear market.

The analyst concluded that, “while this confirms the prevailing bearish trend, such periods have historically also presented medium-term opportunities, though today, identifying them demands significantly more rigorous asset selection than in previous cycles.”

Bitcoin holds onto $59,000

Bitcoin has settled in the $59,000 zone, trying and failing to reclaim the above-$60,000 level. Over the past day, it fell 0.9%, trading at $59,224. The lowest point it hit was $58,981, while the intraday high stands at $60,656.

Currently, it seems that the price is moving towards the $58,000-$59,000 level, and it may soon start moving within that tight range, moving away from the psychologically important level of $60,000.

The next support level for the coin stand at $54,000 to $55,000, and breaking that would lead to the lows not seen since early 2024.

The post 84% of Altcoins in ‘Total Underperformance’, Bitcoin Moving to $58K appeared first on TechGaged.com.