Bitcoin Dominance Spikes To Six-Month High As Ethereum Falls 13%


With a particularly horrific weekend behind them, Bitcoin and other cryptocurrencies continue their downward spiral. Bitcoin drops below $27,000 for the second time.

Bitcoin value fell 10.68% between Wednesday morning and Thursday morning; It lost 28.07% in the previous week; 30.50% in the previous month; and 43.27% in the previous year.

Bitcoin is not alone on the slide. Ether, the second most traded cryptocurrency, fell to $1,700, the first time the token had fallen below $2,000 since July. Ripple (XRP) (-23.48%) and Binance (BNB) (-10.9%) were among the top ten decliners. Surprisingly, the US dollar has maintained its strength and is now up by 0.51%.

Bitcoin Gaining Control Amidst the Bloodbath

In the last 24 hours, the ETH/BTC trading pair fell 7.5% to 0.0663. The decline was part of a correction that started on May 11 when the pair was trading at a local high of 0.0768. This pushed Ether down by as much as 13.75 percent against Bitcoin.

Cryptocurrencies, like stock markets, have been under pressure in recent weeks. Money managers, traders and investors, in particular, are showing symptoms of “risk reduction” in their portfolios as concerns grow about the Fed’s growing hawkishness.

Ethereum, the second largest cryptocurrency by market capitalization, was affected by the same overall headwind, and is currently trading at a discount of 65% to an all-time high of $4,870 in November 2021. In the same time frame, Bitcoin is down 63% from its highest Its all-time level is at $69,000.

Bitcoin

BTC/USD trades below $30k. Source: TradingView

On May 12, the Bitcoin Dominance Index – a measure that measures the share of Bitcoin in the market against alternatives – rose to nearly 45 percent, the highest level since November 2021. This may also indicate that given the current market instability, he sees Traders that Bitcoin have a safer choice – “digital gold”.

Related reading | Bitcoin carnage continues as Bitcoin breaks down to $34,000

Despite the consolidation of Bitcoin’s dominance in recent days, with the price of Ethereum dropping against BTC, many investor questions remain.

Rekt Capital, Crypto Analyst, Noted:

“Now that BTC is dominant at the red level – what’s next? History suggests that every time BTC D challenges the red level – it breaks. There is a strong possibility that BTC Dominance will continue to top the black wedge structure over time.”

What do analysts think?

Moreover, if Bitcoin loses its overall support range around $28,000, Rekt Capital expects an additional decline in the coming months, if not weeks.

“If BTC loses this macro range completely, BTC will enter a downtrend, full of retracements before further declines. The question is how long this downside will take. History has shown that the downside can take months (slowly bleeding) or weeks (It collapses and then bottoms in a V-shape),” he said.

Michaal van de Poppe, CEO of Eight and a well-known crypto trading analyst said:

“If BTC loses this macro range completely, BTC will enter a downtrend, full of retracements before further declines. The question is how long this downside will take. History has shown that the downside can take months (slowly bleeding) or weeks (It collapses and then bottoms in a V-shape),” he said.

Related reading | TA: Big Ethereum Targets after the last crash of under $25,000

Featured image from Shutterstock, chart from tradingview.com





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