Bitcoin (BTC) hit 48-hour highs overnight into May 20 as U.S. dollar weakness gave bulls some much-needed respite.
Dollar strength declines after 20-year record
Still battling to switch $30,000 to reliable support, the happy couple nevertheless prevented a much deeper retracement, helping calm fears that last week’s $23,800 capitulation event didn’t mark the underside.
The U.S. dollar index (DXY) provided the backdrop to Bitcoin’s relatively solid performance, next off two-decade highs to dip 2% per week.
This made an appearance to alleviate some pressure on stock markets, the S&P 500 finishing May 19 lower a far more modest .58% when compared with formerly within the week, the Nasdaq 100 less.
While treading water greater than 50% below its all-time highs, the biggest cryptocurrency had punished latecomers towards the market, one analyst noted.
“Today, newbies who became a member of this past year have been in -34% loss,” Ki Youthful Ju, Chief executive officer of analytics platform CryptoQuant, authored inside a number of tweets at the time.
Ki highlighted a chart of bands of unspent transaction outputs (UTXOs) showing age investments. Individuals who’d only knowledgeable “bear cycle” before were now lower 39%, he concluded, while older coins remained as in profit.
“So here’s hopium for bears. If $BTC crashed so difficult because of the macro crisis and all sorts of Bitcoiner institutions go underwater, it might go $14k according to historic MDD,” he added.
As Cointelegraph reported, multiple predictions of the major BTC cost retracement, some under $14,000, still circulate.
Meanwhile, attention centered on Bitcoin’s growing market presence over altcoins.
Following the Terra LUNA debacle, the atmosphere had switched cold outdoors BTC, and today, signs have there been that alts could cede dominance quickly.
At 44.8%, Bitcoin’s share from the overall cryptocurrency market cap what food was in its greatest since October 2021 during the time of writing.
“We often see dominance rally completely to 60%,” popular Twitter account IncomeSharks forecast.
“This is why you ought to be careful on alts and trade all of them with tight stops. There’s a high probability we’re able to see money leave alts and begin returning to BTC.”
60% BTC market dominance would represent an amount not seen since March this past year.
“Most alts I have looked at haven’t had the ability to break their H4 trends despite yesterday’s move ahead BTC,” fellow popular analyst Pierre cautioned.
“Would still expect many of them to die two times harder if btc ended up being to remain stuck in this particular same range, or resolve towards the downside.”
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