Compared to the cryptocurrency market, the artificial intelligence (AI) sector within the cryptocurrency space remains relatively small in past market cycles, but it shows significant growth potential. Analyst Miles Deutscher reports that the market capitalization of AI tokens is nearly nine times smaller than the peak during the “SOLUNAVAX” cycle in 2021.
A recent chart from Messari shows that, following Bitcoin’s lead, other cryptocurrencies in the industry tend to experience parabolic price movements. If this historical trend repeats, AI tokens may further expand as Bitcoin continues its bullish trajectory.
AI Tokens Lag Behind Historical Peaks
The AI index has seen significant growth, but its market capitalization is still far below the previous altcoin cycles. The “SOLUNAVAX” tokens, including Solana (SOL), Luna (Luna), and Avalanche (AVAX), reached their peak market capitalization in 2021, far exceeding today’s AI sector.
Memecoins have also seen a resurgence, but they still lag behind previous altcoin cycles. This pattern suggests that AI tokens may continue their upward trend, especially if Bitcoin maintains its positive momentum in 2025.
Whale Transactions and Bitcoin’s Resistance Levels
Large Bitcoin transactions indicate an increase in institutional activity. Whale alert data shows that 10,557 BTC (valued at approximately $1.04 billion) were transferred from an unknown wallet to Coinbase Institutional. This trend highlights the growing interest from major investors as Bitcoin fluctuates near critical price levels.
According to analyst Rekt Capital, Bitcoin has rebounded from its lows and surged within the range of $91,000 to $101,000. However, it faces rejection at the upper end of the range, presenting a new low resistance level. This suggests that Bitcoin’s next price movement will depend on its ability to break through these key resistance points.
Current Price Trend and Volatility of Bitcoin
According to CoinMarketCap, Bitcoin’s price is $100,960, reflecting a 1.40% increase for the day. Earlier in the day, it touched the $100,000 mark before retreating. The price briefly fell below $98,000 before rebounding, indicating that buyers remain active at lower levels.
Related: $100,000 Bitcoin: How Policies and Markets Shape Bitcoin’s Future
Bitcoin faces psychological resistance at the $100,000 level and has struggled to maintain its upward momentum. The next resistance level is at $100,500, marking the highest point before a significant pullback. Meanwhile, support remains steady at $98,000, with additional support levels at $97,500 and $96,800. Falling below these points could lead to further declines.
Market Sentiment and Indicators
Bitcoin’s market capitalization has now exceeded $2 trillion, reflecting strong investor confidence. However, trading volume has decreased by 4.68%, indicating a reduction in market activity. The Relative Strength Index (RSI) stands at 55.90, suggesting a neutral market condition. A reading above 60 may confirm bullish momentum, while a reading below 50 could signal bearish pressure.
The Moving Average Convergence Divergence (MACD) indicator currently shows bearish divergence, with the histogram in negative territory. If the MACD line crosses above the signal line, a bullish reversal may occur.
