While the global crypto market cap has crashed in the last few days to just $1.24 trillion and prices of many altcoins have dropped drastically, the dominance of Bitcoin (BTC), the most popular cryptocurrency, seems to be rising.
At the time of writing, Bitcoin dominance was at 44.68%, around 0.4% higher than the last day, data on CoinMarketCap shows.
Bitcoin dominance continued to rise, edging above 45% on Wednesday. “In fact, the Bitcoin Dominance is at its highest in the last 7 months,” analysts at WazirX Trade Desk shared in a note.
The analysts are expecting that Ethereum (ETH), the second largest crypto, may weaken further against Bitcoin.
“The daily chart for ETH-BTC is moving along an ascending channel pattern. However, the trend is on the verge of breaking below the pattern. We could expect Ethereum to weaken further against BTC as Bitcoin dominance continues to rise,” the note said.
Ethereum price has dropped by over 4 percent in the last 24 hours under $2000. At the time of writing, the value of 1 ETH was $1956.
Bitcoin Price Movement
In terms of price, Bitcoin appear to be struggling to hold the $30,000 level. Experts say that sellers are currently dominating the crypto markets and next few weeks are expected to remain choppy for investors, more so due to the rising global inflation rates.
“Bitcoin again dropped below the US$30,000 on Wednesday, as bulls could not maintain Tuesday’s gains. For the past few weeks, BTC has been trading in a very tight range between its support at US$27,000 and US$30,000, which is the lowest in its yearlong trading. This trend shows that the investors are a little hesitant to come back to the market, fearing recession with the downfall of the retail sector,” Edul Patel, co-founder and CEO of Mudrex, told FE Online.
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Experts say that the latest statement made by US Fed chair Jerome Powell on the continuation of strict monetary policies till the inflation cools down has kept the investors on their toes.
“The growing global inflation numbers are putting tremendous pressure on the traditional/crypto markets. The sellers are dominating the crypto market currently and the market is expected to remain choppy in the coming weeks,” Shivam Thakral, CEO of BuyUcoin, said.
Next support at $24,000
“The Bitcoin market witnessed some sell-offs yesterday leading to a price drop of over 5% through the day. Last day’s correction appears to be a reaction to the stocks of US retail chains Walmart and Target taking a tumble. On the daily time-frame, the BTC chart is traversing within a descending triangle pattern and is trading close to its support level. The next support for Bitcoin is expected at $24,000,” said WazirX Trade Desk.
(Cryptos and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Please consult your financial advisor before making any investment decision)