Friday, June 24, 2022

Weaker dollar lifts Bitcoin to $30.7K as analyst eyes 60% BTC dominance

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Bitcoin (BTC) hit 48-hour highs in a single day into Might 20 as U.S. greenback weak spot gave bulls some much-needed respite.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Greenback power declines after 20-year document

Knowledge from Cointelegraph Markets Pro and TradingView recorded a excessive of $30,725 for BTC/USD on Bitstamp.

Nonetheless struggling to flip $30,000 to dependable assist, the pair nonetheless averted a deeper retracement, serving to calm fears that final week’s $23,800 capitulation event didn’t mark the underside.

The U.S. greenback index (DXY) offered the background to Bitcoin’s comparatively stable efficiency, this coming off two-decade highs to dip 2% in per week.

This appeared to alleviate some stress on inventory markets, the S&P 500 ending Might 19 down a extra modest 0.58% in comparison with previously in the week, the Nasdaq 100 much less.

U.S. greenback index (DXY) 1-hour candle chart. Supply: TradingView

Whereas treading water greater than 50% beneath its all-time highs, the biggest cryptocurrency had punished latecomers to the market, one analyst famous.

“At present, newbies who joined final yr are in -34% loss,” Ki Younger Ju, CEO of analytics platform CryptoQuant, wrote in a series of tweets on the day.

Ki highlighted a chart of bands of unspent transaction outputs (UTXOs) exhibiting the age of investments. Those that had solely skilled one “bear cycle” earlier than have been now down 39%, he concluded, whereas older cash have been nonetheless in revenue.

“So this is hopium for bears. If $BTC crashed so onerous as a result of macro disaster and all Bitcoiner establishments go underwater, it might go $14k based mostly on historic MDD,” he added.

As Cointelegraph reported, a number of predictions of a significant BTC value retracement, some beneath $14,000, proceed to flow into.

Altcoins roll over

In the meantime, consideration targeted on Bitcoin’s growing market presence over altcoins.

Associated: Bitcoin must defend these price levels to avoid ‘much deeper’ fall: Analysis

After the Terra LUNA debacle, the temper had turned chilly exterior BTC, and now, indicators have been there that alts might cede dominance quickly.

At 44.8%, Bitcoin’s share of the general cryptocurrency market cap was at its highest since October 2021 on the time of writing.

“We might see dominance rally all the way in which again to 60%,” common Twitter account IncomeSharks forecast.

“Because of this you must be cautious on alts and commerce them with tight stops. There is a good probability we might see cash depart alts and begin going again to BTC.”

60% BTC market dominance would characterize a stage not seen since March final yr.

“Most alts I have been watching have not been capable of break their H4 traits regardless of yesterday’s transfer on BTC,” fellow common analyst Pierre warned.

“Would nonetheless count on most of them to die twice tougher if btc was to stay caught inside this similar vary, or resolve to the draw back.”

Bitcoin dominance 1-week candle chart. Supply: TradingView

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it is best to conduct your individual analysis when making a choice.