Small-Cap Index Leads February Growth, But What’s Bitcoin Doing?

Small-Cap Index Leads February Growth, But What’s Bitcoin Doing?

A look at the price charts shows that altcoins have outperformed Bitcoin during the recent rally. Although bitcoin led the uptrend, the small-cap coin made all the waves in the room, outperforming others and including bitcoin. These point to an altcoin season after “crypto winter” and are further evidenced by the gains recorded so far in February.

Small cap index is going ahead

The overall crypto market has been on a downtrend since December, however, the second week of February ended with double-digit gains for Bitcoin and all indices. The small, mid and large cap indices have all rallied so far. Among them, the small-cap index leads, showing strong bullish momentum in small-cap altcoins.

Only in the first two weeks of February did the small-cap index rise by as much as 19%. This is a big step up for the index after ending January as the worst performing index and posting alarming losses compared to the rest. However, the tables have since changed, with the small-cap index notably up 4%.

Small-Cap Index Leads February Growth

Small cap indices with top gains | The source: Arcane Research

Bitcoin, the mid-cap, and the large-cap index all posted double-digit gains in January. Most of the gains recorded occurred in a single week as the crypto market saw its price jump.

What about bitcoins?

Without a doubt, Bitcoin has also made impressive gains for investors over the same period. While not as high as the small-cap index, it is still one of the top bulls as market sentiment turns positive from negative. Improved dynamics also helped in this case.

The leading digital asset is currently trading above the 20-day moving average but remains low above the 50-day MA. Currently, the next resistance to break is $45,240. However, a break of the second resistance at $46,712 is imperative for another rally.

Small-Cap Index Leads February Growth

BTC 4 hour chart | Source: TradingView

BTC is currently showing a strong sell signal around the 50-day and 100-day moving averages. Unless the buyers make significant progress in sustaining the price, it is likely that the bears will take over and drag bitcoin into another sustained downtrend with the next target of $40,000.

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