Bitcoin’s market share, better known as dominance rate, reached a 30-month high.
The cryptocurrencies they lose rhythm. He Bitcoin It moves away from the US$35,000 that it was quoted on Wednesday and fell to US$34,200 this Thursday. Meanwhile, Ethereum, on the other hand, rises 1.9% in the last 24 hours and remains at US$1,800. Among the top ten cryptocurrencies, the strong rise of Dogecoin up to 13% and Cardano stands out.
Analysts believe that the leading cryptocurrency could be consolidating the current levels after rising strongly (+20%) in the last week driven by optimism surrounding exchange-traded funds (ETFs) of BTC spot. In recent days, various factors, including news false denialshave pushed prices up to levels not seen since the collapse of Terra and Three Arrows Capital in spring 2022.
Bitcoin: what are the reasons that drove it
“It is clear that there is a lot of enthusiasm about the prospect of a Spot bitcoin ETFas is evident from such an increase in the speculation of something that was already expected to finally fulfill what was planned. In any case, the break of $30,000 was large and since then a series of possible technical barriers have been quickly overcome,” underlines Craig Erlam, senior markets analyst at OANDA.
For its part, Charles Edwards, founder of the hedge fund specialized in bitcoin Capriole Investments, indicated that miners are “sold more than usual”, which may be a clear sign that prices would be consolidating close to the important resistance of US$35,000.
Be that as it may, the optimism is total. So much so that the market share of Bitcoin better known as mastery rate, reached a maximum of 30 months. That is, bitcoin did not represent as much of a percentage (+54%) of the total cryptocurrency market since aggressive bull market of 2021. Likewise, the investor sentiment It has also returned to the same level as when bitcoin reached its all-time high of $69,000 in November 2021.
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Bitcoin: can it continue to rise?
In this context, Edwards and other experts believe that bitcoin could continue climbing to US$40,000 or US$45,000. “While the price may temporarily stagnate here in the monthly resistance, The next area of significant problems is the low or mid-$40,000 zone. We hope that bitcoin will take us there in a short time given the data we have at hand,” he acknowledged in statements collected by Coindesk.
However, some experts consider that the movements they are being “somewhat exaggerated” and that the market is selling the bear’s skin before hunting it. Samer Hasn, market analyst at XS.com, considered that the rally slowdown points out that the market “is realizing what is true to date”, which is nothing other than “there is no confirmed imminent launch” of any ETF.
“After the hype around the BTC price died down, we started to see a profit taking surge and a notable liquidation of long positions. According to data provided by CoinGlass, yesterday we witnessed the liquidation of the equivalent of 132 million dollars in long positions in Bitcoin, which represents the largest liquidation in one day since September 11. This appears to reflect market expectations that bitcoin will not be able to stay above the $35,000 level“, sentence.
Source: Ambito
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