Bitcoin Analysis: Is BTC’s Domain In Danger? Is Bitcoin’s dominance at risk? The XTB broker offers us an interesting analysis of the BTC compared to other cryptocurrencies.
The week he leaves us was quite quiet in the cryptocurrency market. Volatility is low, as the price of the main currencies has stagnated in narrow ranges, barely managing to rise or fall by more than a small percentage. Now we ask ourselves: Is Bitcoin’s dominance in danger?
The main cryptos can be traded unchanged, however the alternative currencies have performed relatively well. The altcoins with the most potential are Ripple, Stellar, Chainlink, Cardano and Tezos.
The growth of altcoins has been reflected in the dominance of the market. Bitcoin’s market dominance decreased to 62.8%. The capitalization of all digital assets in circulation reached $ 269 billion, while an average daily trading volume is recorded at $ 67 billion, as reported by XTB .
Cryptocurrency exchanges see a drop in volumes
Cryptocurrency exchange Kraken reported that trading volume fell 31% from the start of the year, resulting in a sharp decrease in volatility in the cryptocurrency market.
Kraken also reported that in the past 30 days, Bitcoin’s correlation with S&P 500 increased to 0.65, while the 30-day correlation to gold fell to -0.49.
Bitcoin has been trading in a symmetric triangle pattern and has recently bounced off the downtrend line. If the price is going to break below the lower limit of the triangle pattern, then the first support to look for is at $ 8600. However, if the bulls manage to take control of the market, the resistance of around $ 9770 may be at risk.
Is BTC’s domain in danger?
According to recent data provided by Arcane Research, small-cap coins have outperformed Bitcoin nearly five times so far this year. The most popular cryptocurrency gained 27%, however some smaller-cap coins like VeChain or Dogecoin grew five times faster.
Experts note that those currencies can be easily put in motion due to low liquidity. Much less capital is needed to start the ball rolling and push them above resistance levels. Many experts now predict the decline of Bitcoin’s dominance similar to what happened in 2017.
On Wednesday, Ripple managed to break above the downtrend line and recover. Yesterday the currency attempted to extend gains, however 200 MA (red line) proved to be too strong a resistance for market bulls.
During Friday’s session, the price returned to the trend line mentioned above. The question remains whether he will be able to defend himself against the bears. In case of a breakout, the lowest main support can be found at 0.1656.