Bitcoin (BTC) hit 48-hour highs in a single day into Could 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 file
Information from Cointelegraph Markets Professional 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 prevented a deeper retracement, serving to calm fears that final week’s $23,800 capitulation occasion didn’t mark the underside.
The U.S. greenback index (DXY) offered the background to Bitcoin’s comparatively strong efficiency, this coming off two-decade highs to dip 2% in every week.
This appeared to alleviate some strain on inventory markets, the S&P 500 ending Could 19 down a extra modest 0.58% in comparison with beforehand within 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 most important cryptocurrency had punished latecomers to the market, one analyst famous.
“At the moment, newbies who joined final yr are in -34% loss,” Ki Younger Ju, CEO of analytics platform CryptoQuant, wrote in a sequence 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 had been now down 39%, he concluded, whereas older cash had been nonetheless in revenue.
“So here is hopium for bears. If $BTC crashed so exhausting on account of the macro disaster and all Bitcoiner establishments go underwater, it may go $14k based mostly on historic MDD,” he added.
As Cointelegraph reported, a number of predictions of a serious BTC worth retracement, some beneath $14,000, proceed to flow into.
Altcoins roll over
In the meantime, consideration centered on Bitcoin’s growing market presence over altcoins.
Associated: Bitcoin should defend these worth ranges to keep away from ‘a lot deeper’ fall: Evaluation
After the Terra LUNA debacle, the temper had turned chilly outdoors BTC, and now, indicators had been there that alts may 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 may see dominance rally all the way in which again to 60%,” in style Twitter account IncomeSharks forecast.
“That is why it’s essential be cautious on alts and commerce them with tight stops. There’s a great likelihood we may see cash depart alts and begin going again to BTC.”
60% BTC market dominance would characterize a degree not seen since March final yr.
“Most alts I have been watching have not been in a position to break their H4 tendencies regardless of yesterday’s transfer on BTC,” fellow in style analyst Pierre warned.
“Would nonetheless anticipate most of them to die twice more durable 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 here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, you must conduct your personal analysis when making a call.