Weaker dollars lift Bitcoin to $ 30.7K while analyst sees 60% BTC dominance
Bitcoin (BTC) reached 48-hour highs overnight until May 20, when weakness in the US dollar gave bulls a much-needed respite.
The dollar strength falls after a 20-year record
Data from Cointelegraph Markets Pro and TradingView recorded a $ 30,725 peak for BTC / USD on Bitstamp.
They are still struggling to turn $ 30,000 into reliable support, but the pair still avoided a deeper retracement, helping to allay fears that last week̵[ads1]7;s $ 23,800 capitulation event did not mark the bottom.
The US dollar index (DXY) provided the background for Bitcoin’s relatively solid performance, and after two decades of highs, it fell to 2% in one week.
This seemed to ease some pressure on the stock markets, the S&P 500 ended May 19 with a more modest 0.58% compared to earlier in the week, the Nasdaq 100 less.
While it trampled water more than 50% during all-time highs, the largest cryptocurrency had punished newcomers to the market, an analyst noted.
“Today, beginners who joined last year have a loss of -34%,” wrote Ki Young Ju, CEO of the analytics platform CryptoQuant, in a series of tweets on the day.
Ki highlighted a chart of bands of unused transaction outputs (UTXOs) showing the age of the investments. Those who had only experienced one “bear cycle” before were now down 39%, he concluded, while older coins were still in surplus.
‘So here’s hopium for bears. “If $ BTC crashes so hard because of the macro crisis and all Bitcoiner institutions go underwater, it could go $ 14k based on historical MDD,” he added.
As the Cointelegraph reported, several predictions about a larger BTC price reduction, some under $ 14,000, continue to circulate.
Altcoins are rolling over
Meanwhile, attention focused on Bitcoin’s growing market presence over altcoins.
Related: Bitcoin needs to defend these price levels to avoid “much deeper” falls: Analysis
After the Terra LUNA debacle, the mood had become cold outside BTC, and now there were signs that the altar could quickly give up dominance.
At 44.8%, Bitcoin’s share of the total market value of cryptocurrencies was at its highest since October 2021 at the time of writing.
“We could see dominance rally all the way back to 60%,” the popular Twitter account IncomeSharks forecast.
“This is why you need to be careful with the altar and replace them with narrow stops. There is a good chance that we can see money leave the altar and start going back to BTC.”
60% BTC market dominance will represent a level not seen since March last year.
“Most altars I’ve looked at have failed to break the H4 trends despite yesterday’s move on BTC,” a popular analyst Pierre warning.
“Would still expect most of them to die twice as hard if btc were to stay within the same range, or go over to the downside.”
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