Is the Crypto Market Turning Healthy Again?
Momentum is shifting as Bitcoin nears $100K, altcoins rebound, and market conditions improve.
After breaking below its tight consolidation range a couple of days ago, Bitcoin has slowly climbed back above $98K, making progress toward retesting the crucial $100K level. This prolonged consolidation led to a noticeable drop in interest and buying activity, with altcoins suffering as a result. However, the past couple of days have seen a turnaround, with altcoins posting strong gains. While we’re not out of the woods yet, these are promising signs that bulls are gradually regaining control.
Altcoins Recover as Memecoin Frenzy Fades
Altcoins are beginning to show signs of life as the memecoin casino starts to die down. Data from Dune Analytics indicates that active users and new sign-ups on Pump.fun are rapidly declining, returning to pre-rally levels—an extremely healthy sign for the broader crypto market.
Money leaving the memecoin space is a long-term benefit for crypto as a whole. Much of this capital was purely speculative, with 99% of the flow ending up in the hands of scam token creators and rug pulls. Now, these funds are rotating back into Bitcoin and other altcoins, strengthening the market.
Regulatory Shift Fuels Market Optimism
A major recent development supporting this bullish momentum is the US SEC withdrawing its appeal of a ruling that blocked its attempt to expand securities laws to cover decentralised finance (DeFi). This policy shift is already having a tangible impact, with Sonic surging another 20% in the last 24 hours, solidifying its dominance in the market.
The newly appointed crypto task force and a more crypto-friendly SEC are already making waves. Could this be a sign of what’s to come—pro-crypto regulations fueling further market rallies?
Stormrake Spotlight: Ondo Finance (ONDO) ($1.23)
Ondo Finance (ONDO) is showing signs of a potential reversal after sweeping the lows of its accumulation range and bouncing 10% from that level. Now, it’s eyeing a reclaim of the 0.382 Fibonacci level at $1.25, which would be the first step in flipping long-term momentum back in favour of the bulls.
BTC/USD Key Levels and Price Action:
Bitcoin is approaching a retest of the $100K key level after flipping structure and momentum in favour of the bulls over the past day. Now trading above all major moving averages, BTC is expected to find support at the 21 EMA on any slight pullbacks as it continues its climb toward six figures.
BTC Total ETF Flows for 20 Feb: $ -94.6 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
Ethereum has inched higher but remains within its established range, currently sitting between two key levels. The outlook still favours a retest of the range high at $2,865, with the 21 and 55 EMAs expected to act as bounce levels on the way up.
ETH Total ETF Flows for 20 Feb: $ -10.3 million
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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