Bitcoin dominance in the market below 50%; What does this mean for the market?admin
The price of bitcoin has been fluctuating in a constant range for a short time at shorter frames. At the same time, the dominance of this cryptocurrency in the market has reached about 48%. Some analysts predict that this may lead to a repeat of the 2017 cycle and the peak of the market.
According to BTC News, a market analyst named Byzantine General, referring to the support of the $ 47,000 area, announced that the
whales have 4 main support clusters with high purchase orders in the areas of $ 48,507, 47,646. $ 46,532 and $ 45,507.
On the other hand, there is a major resistance in the $ 55,000 area. Whalemap data show that there is an area with a high volume of capital inflows. We also see significant support in the 200-day moving average (EMA200). The Byzantine general says the standard is currently priced at $ 40,000 and that bitcoin may return to the area. He further wrote:
$ 47,000 was the support area, various signs, including whale bubbles, confirmed this; That’s why I said a few hours ago that we might see a resurgence. In the long run, however, I think it could fall to $ 40,000.
Bitcoin price performance has also been influential on the day the cryptocurrency dominated the market. Meltem Demiros, senior director of strategy at CoinShares, says the index has fallen below 50 percent for the first time since 2018; By early 2018, bitcoin dominance had dropped to 37 percent. Bitcoin currently dominates 48%.
Three years ago, as bitcoin dominated the market, Altcoin made significant leaps; Therefore, it can be said with a not so deep analysis that there is a possibility of repeating history. Demiros, however, believes that the high profits of currencies such as Solana and Terra have not been due to capital inflows into their markets, but due to widespread changes in cryptocurrency platforms.
With the interpretations mentioned earlier, it is essential that investors pay attention to the volume of transactions and the depth of the coin market. Demiros says the price of cryptocurrencies may change dramatically with low liquidity and trading volume and reasons for price fluctuations. He added:
Glassnood data from the EADF index show that the increase in sales pressure last week was due to the high activity of new investors. This index is used to determine the time of market peaks and uptrends.
Market trader William Clemente wrote in the chart above that the Bitcoin latency is declining. According to him, this issue causes new currencies to enter the accounts of long-term investors. Changes in the net position of long-term investors have also increased in recent days. Clemente says about this:
The mechanism of bitcoin fluctuations is only to transfer currencies from the fearful investors to the stronger ones.
Bitcoin dominance in the market below 50%; What does this mean for the market?