Key Points
- Bitcoin’s price has dropped by over 5% in the last seven days, with its current market capitalization at over $1.22 trillion.
- The rise in Bitcoin’s dominance is due to altcoins turning bearish, not a Bitcoin bull rally.
Bitcoin’s [BTC] dominance has seen an increase in the past few days, following a significant decline. This surge, however, is not due to a Bitcoin bull rally, but rather a result of altcoins turning bearish.
Data from CoinMarketCap shows that Bitcoin’s price has fallen by more than 5% in the past week, pushing its price below $63k. As of the time of writing, Bitcoin was trading at $62,369.67, with a market capitalization of over $1.22 trillion.
Altcoins and Bitcoin’s Dominance
The downturn wasn’t exclusive to Bitcoin, as several altcoins, including Ethereum [ETH], also experienced price corrections. This overall decline in the altcoin market cap has allowed Bitcoin’s dominance to rise again after a sharp drop on April 28. At present, Bitcoin’s dominance stands at 50.9%.
Investigating the impact of this rising dominance on investor sentiment, it was found that selling pressure on Bitcoin has decreased in the last few hours, as indicated by a decline in its exchange reserve. In addition, its net deposit on exchanges was also low compared to the last seven-day average.
Bitcoin’s Potential Price Increase
Data from CryptoQuant showed that miners were selling at a slower pace, indicating their intention to hold Bitcoin. This increase in buying pressure and investors’ willingness to hold Bitcoin might trigger a trend reversal, potentially leading to a price increase.
However, the Relative Strength Index (RSI) remained bearish as it registered a downturn. Looking ahead, if a bull rally occurs, Bitcoin’s price might first drop to the $61k support level. A successful test of this support could initiate a bull rally, allowing Bitcoin to first reclaim $66k. A further price increase could see Bitcoin reach $71k before hitting a new all-time high in the coming months.
