The crypto market has evolved from the unending devastating bear market to a more green and overwhelming market. Cryptocurrencies are moving from the initial stagnant, and lower lows state to a rallying to the highest.
Among the many variety of cryptocurrencies moving upward and making significant higher highs is Bitcoin, the most important crypto by market cap. To date, Bitcoin has broken multiple resistance and continued in a bullish trend carrying the entire crypto market with it.
Bitcoin Taps Above $17,000 For The First Time In One Month
Because the FTX crash happened and the bear market deepened, we saw Bitcoin crashing to lower lows and slipping below the 17,000 zones. After it fell below that, Bitcoin stayed there for a protracted while. Nevertheless, over the past few weeks because the recent yr began, the Bitcoin market has been making some positive moves.
BTC price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com
After ranging across the $16,000 zone from late last yr, Bitcoin tapped into and above $17,000 for the primary in almost a month, trading at $17,500. Tuesday was when BTC made a significant move of about 1.5%, the very best each day gain since December 20, 2022.
And since Bitcoin tapped into the $17,000 zone, the coin hasn’t budged and even fallen out of that zone. Nevertheless, it has lost a few hundred dollars and now trades at $17,409 on the time of writing. Despite the retrace, its market capitalization continues to be above $335 billion, which is higher than the market cap seen on BTC late last yr.
BTC Begins To Lose Dominance
Though Bitcoin continues to be considered the large dog amongst cryptocurrencies, it’s starting to lose its dominance against altcoins within the crypto space as whale investors have registered low participation within the BTC market. In line with the on-chain analytics platform CryptoQuant, altcoin trading volume dominance is now above 50% versus Bitcoin’s 39% dominance.
Bitcoin crypto market dominance over time. Source: CryptoQuant
Maartunn, a contributor to CryptoQuant, wrote in a blog post, “Often when traders get bored on BTC, they begin trading altcoins that are, usually, further on the danger curve. This makes them very fragile and straightforward to squeeze.” He added, “altcoin dominance is again above 50%. Remember: when altcoins proceed to dominate, there’s a possible risk for further downside,” he added.
BTCUSD 30-Day Volatility | Source: Arcane Research
Moreover, in accordance with a recent report from Arcane Research, BTC’s 30-day volatility has plummeted to June 2020 levels because the asset has been trading relatively flat with low volatility through the primary 10 days of 2023, making it much more stable than gold, the dollar strength index, Nasdaq, and the S&P500 measured through 5-day volatility.
Meanwhile, with altcoins gaining more dominance, large investors at the moment are turning to assets apart from BTC. Ethereum (ETH), Cardano (ADA), Polygon (MATIC), and Solana (SOL) have made significant moves over the past 7 days, with three of them up by over 50% combined.
Featured image from Unsplash, Chart from TradingView.com