Aaryamann Shrivastava
FXStreet
- Bitcoin price is on the verge of bursting through a multi-month barrier at $28,567 but is repeatedly failing to breach it.
- Institutional interest has risen significantly recently, albeit in favor of BTC and not altcoins.
- While the flow of capital may suggest an alt season incoming, Bitcoin large wallet holders are preparing for another quarter of gains.
Over the last few months, Bitcoin price has emerged as one of the best-performing assets in the entire crypto market, leaving behind Ethereum, other altcoins and even meme coins. The rally registered on the charts is making investors susceptible as to whether BTC will continue rising or if this is the end of the line.
Bitcoin price to dominate the possibility of an alt season
Bitcoin price trading at $27,800 is very close to pushing beyond the $30,000 mark. The growth observed in the first quarter of the year neutralized the possibility of altcoins taking over the market. And if the same is observed over the next quarter, an alt season may have to wait longer.
An alt season is the period of time when altcoins perform and return better than Bitcoin does. Usually, an alt season occurs when the top 50 cryptocurrencies have better growth than Bitcoin in a 90-day period. Generally, an alt season comes after the biggest cryptocurrency in the world rallies as the capital gained in this period flows into altcoins.
Alt Season indicator
However, looking at the indicators, this may not be the case for now. This is because two of the most important cohorts of investors are favoring Bitcoin price rise at the moment. Bitcoin large wallet holders and institutional investors have been stacking up and investing in BTC over the last few weeks, lifting expectations of a rally.
 [00.20.33, 31 Mar, 2023]-638158043950750125.png)
Bitcoin whale holdings
The addresses holding 10 to 10,000 BTC have been growing over Q1, with some decline observed in the addresses holding 1,000 to 10,000 BTC.
Furthermore, institutional investors have also redirected their funds over the last week, with Bitcoin receiving the larger chunk of them. The week ending March 24 observed $127.5 million flowing into BTC, the highest since July 2022.
Bitcoin institutional inflows
Hence, the market is still in a Bitcoin season and will continue unless BTC fails to breach the critical resistance at $28,567, which has been the case for two weeks now. Flipping it into support would push Bitcoin price towards reclaiming $30,000.
BTC/USD 1-day chart
However, failing a breach would bring the price back down to the critical support level of $24,943. Losing it would lead to Bitcoin price touching the lows of $22,000 to $20,000.
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