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

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

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

Greenback energy declines after 20-year document

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

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

The U.S. greenback index (DXY) offered the background to Bitcoin’s comparatively strong efficiency, this coming off two-decade highs to dip 2% in per week.

This appeared to alleviate some stress on inventory markets, the S&P 500 ending Might 19 down a extra modest 0.58% in comparison with previously in the week, the Nasdaq 100 much less.

U.S. greenback index (DXY) 1-hour candle chart. Supply: TradingView

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

“At this time, 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) exhibiting 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 this is hopium for bears. If $BTC crashed so onerous because of the macro disaster and all Bitcoiner establishments go underwater, it might go $14k primarily based on historic MDD,” he added.

As Cointelegraph reported, a number of predictions of a serious BTC value retracement, some beneath $14,000, proceed to flow into.

Altcoins roll over

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

Associated: Bitcoin must defend these price levels to avoid ‘much deeper’ fall: Analysis

After the Terra LUNA debacle, the temper had turned chilly outdoors BTC, and now, indicators had been there that alts might 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 might see dominance rally all the way in which again to 60%,” fashionable Twitter account IncomeSharks forecast.

“For this reason you’ll want to be cautious on alts and commerce them with tight stops. There is a good probability we might see cash go away alts and begin going again to BTC.”

60% BTC market dominance would symbolize a degree not seen since March final 12 months.

“Most alts I have been watching have not been capable of 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 more durable 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 below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, it’s best to conduct your individual analysis when making a call.