[Analysis] "Bitcoin's recovery to $90,000 is a variable that will determine the direction of altcoins"

An analysis has emerged that the altcoin (virtual assets other than Bitcoin) market could change direction depending on whether Bitcoin (BTC) recovers to $90,000.

On the 2nd, crypto asset (cryptocurrency) analytics firm Swissblock said on X (formerly Twitter), "Bitcoin is adjusting from $90,000 down to the low $80,000s, and altcoins are retesting the November low," adding, "the current range is a key area that requires structural defense."

Swissblock described the recent downward trend as a 'negative shock' and mentioned the possibility that altcoin volatility could expand if Bitcoin fails to recover to $90,000. Swissblock pointed out, "If downward pressure on BTC increases, a rapid decline phase could unfold across altcoins."

It also said, "If Bitcoin falls below the November low of $80,500, altcoin sell-offs could intensify," and expressed the need for close observation of short-term market flows.

It added, "Movements over the next few hours could determine the overall structure of altcoins."