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Thursday, June 13, 2024

Weaker dollar lifts Bitcoin to $30.7K as analyst eyes 60% BTC dominance

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Bitcoin (BTC) hit 48-hour in a single day highs into Might 20 as US dollar weak point gave bulls some much-needed respite.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Dollar power declines after 20-year file

Information from Cointelegraph Markets Professional and TradingView recorded a excessive of $30,725 for BTC/USD on Bitstamp.

Nonetheless struggling to flip $30,000 to dependable assist, the pair however prevented a deeper retracement, serving to calm fears that final week’s $23,800 capitulation occasion didn’t mark the underside.

The US dollar index (DXY) offered the background to Bitcoin’s comparatively stable efficiency, this coming off two-decade highs to dip 2% in every week.

This appeared to relieve some stress on inventory markets, the S&P 500 ending Might 19 down a extra modest 0.58% in contrast to beforehand within the week, the Nasdaq 100 much less.

US dollar index (DXY) 1-hour candle chart. Supply: TradingView

Whereas treading water greater than 50% beneath its all-time highs, the biggest cryptocurrency had punished latecomers to the market, one analyst famous.

“At the moment, newbies who joined final 12 months are in -34% loss,” Ki Younger Ju, CEO of analytics platform CryptoQuant, wrote in a series of tweets on the day.

Ki highlighted a chart of bands of unspent transaction outputs (UTXOs) displaying the age of investments. Those that had solely skilled one “bear cycle” earlier than had been now down 39%, he concluded, whereas older cash had been nonetheless in revenue.

“So here is hopium for bears. If $BTC crashed so laborious due to the macro disaster and all Bitcoiner establishments go underwater, it may go $14k based mostly on historic MDD,” he added.

As Cointelegraph reported, a number of predictions of a significant BTC worth retracement, some below $14,000, continues to flow into.

Altcoins rollover

In the meantime, consideration targeted on Bitcoin’s growing market presence over altcoins.

Associated: Bitcoin should defend these worth ranges to keep away from ‘a lot deeper’ fall: Evaluation

After the Terra LUNA debacle, the temper had turned chilly exterior BTC, and now, indicators had been there that alts may cede dominance quickly.

At 44.8%, Bitcoin’s share of the general cryptocurrency market cap was at its highest since October 2021 on the time of writing.

“We may see dominance rally all the way in which again to 60%,” fashionable Twitter account IncomeSharks forecast.

“That is why you want to be cautious on alts and commerce them with tight stops. There is a good probability we may see cash depart alts and begin going again to BTC.”

60% BTC market dominance would characterize a stage not seen since March final 12 months.

“Most alts I have been watching have not been ready to break their H4 tendencies regardless of yesterday’s transfer on BTC,” fellow fashionable analyst Pierre warned.

“Would nonetheless count on most of them to die twice tougher if btc was to stay caught inside this similar vary, or resolve to the draw back.”

Bitcoin dominance 1-week candle chart. Supply: TradingView

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it’s best to conduct your personal analysis when making a choice.