Bitcoin (BTC) hit 48-hour highs on the night of May 20, as weakness in US dollars needed major relief.
Dollar strength decreases after 20 years of highs
Data from Cointelegraph Markets Pro and TradingView recorded a high of $ 30,725 for the BTC / USD pair on Bitstamp.
Still struggling to make $ 30,000 reliable support, however, the pair avoided a deeper pullback, which helped allay concerns that last week’s $ 23,800 capitation event may not be at the bottom.
The US Dollar Index (DXY) was the backdrop to bitcoin’s relatively strong performance, leaving two-decade highs to fall 2% in one week.
This appeared to ease the pressure on stock markets, with the S&P 500 ending on 19 May with a decrease of 0.58% from the previous week.
With water treading more than 50% below its all-time high, the cryptocurrency was largely punishing market laggards, analysts note.
“ Today, new entrants to the market fell by -34% last year Ki Young Ju, CEO of analytics platform CryptoQuant, wrote in a a series of tweets throughout the day.
Ki drew attention to the Unexpired Transaction Output Bands (UTXO) chart which shows the age of the investments. Those who only knew down cycle previously down 39%, he said, while older bitcoins were still profitable.
” So here’s some hope for the bears. If BTC fell so hard because of the macro crisis that all Bitcoiner institutions were flooded, it could reach $ 14,000 based on historical MDD. “, he said.
As Cointelegraph reported, multiple major price volatility projections, some below $ 14,000, are still circulating.
Altcoins are turning around
Meanwhile, attention has focused on the increasing presence of bitcoin in the altcoin market.
Read also: Bitcoin Must Protect These Price Levels to Avoid a ‘Much Deeper’ Fall: Analysis
After the Terra LUNA debacle, the cold mood turned out of BTC, and now there were signs that altcoins could quickly relinquish their dominance.
At 44.8%, bitcoin’s share of the overall cryptocurrency market capitalization was at its highest level since October 2021 at the time of writing this report.
“ We could see dominance going back up by 60% “, yes predicted the famous Twitter account IncomeSharks.
“That’s why you have to be careful of altcoins and trade them with firm stop orders. There is a good chance that we may see money leaving altcoins and starting to move back towards BTC. »
Dominance of 60% of the BTC market represents a level not seen since March last year.
“ Most of the altcoins I saw were not able to break their H4 trends despite yesterday’s move in BTC », warning Pierre, another great analyst.
“I would still expect most of them to agonize twice as hard if btc were stuck in the same range, or a lower resolution. »
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