Bitcoin remains as the leading and most recognized digital currency.
With a market valuation of nearly $520 billion and a current price of $26,690, Bitcoin has regained the spotlight. It now represents more than half of the entire cryptocurrency market.
This inflection point is important because it occurs at a time when many alternative cryptocurrencies are stagnant or in decline. However, Bitcoin is still almost 5% below its June high and 23% below its January 2022 high, despite the recent rally.
Looking at the market more broadly, the alpha coin’s market dominance ranged between almost 40% and 49% for over two years before it finally reached the 52% level in June when asset manager BlackRock’s call for a spot BTC exchange-traded fund broke out.
Bitcoin Could Be in a Volatile Crypto Landscape
Whales’ interest in Bitcoin was also increasing. The number of addresses with significant cryptocurrency holdings reached new highs. Both positive and negative market effects can be derived from this trend.
A crucial crypto indicator, the BTC “dominance” index, assesses its strength by comparing its market value to that of the entire crypto market. In early 2022, Bitcoin’s market share exceeded 50%, but declined in the summer as altcoins like NFTs and DeFi grew in value.
Dominance is important because it can capture changes in market value, which can occur quickly as a result of changes in price or trading volume. It demonstrates how cryptocurrency investors are responding to current events and also whether BTC is losing ground to stablecoins or NFT tokens.
The cryptocurrency market is currently experiencing a major liquidity crunch as the lack of a potential Bitcoin upward move continues to disappoint investors. The leading cryptocurrency saw a rapid pullback following a 2% rise in its value last night as it failed to hold support at the $26,000 level.
One Step Forward, Two Steps Back for Bitcoin
Bitcoin price tried to break through the round number of $27,000, but the sellers are still present. In fact, the price is currently moving. $26,800 And finally stagnates in 24 hours:
In one week, BTC price shows an increase of 4%. In three months, BTC fell by more than 7%. The BTC/ETH pair stagnated for a week and shows an increase of almost 5% in a month.
Yesterday the price was locked at the resistance level at $27,300. The sellers managed to push the price back to the support level at $26,700. Buyers must defend this support level to avoid returning to $26,000.
For a week, the price has shown momentum with rising lows and highs, we must continue. The RSI also continues to show rising lows and highs on the other side of the downtrend line. The buyers have the momentum in their hands.
Remaining Resilient and Popular
Bitcoin has proved its propensity to see significant increases during periods of market declines. It remains the leading and most recognized digital currency.
Meanwhile, investors are bracing for a possible drop in Bitcoin’s value in September, a historically difficult month for the cryptocurrency. This cautious outlook is reinforced by the growing chances of a global economic slowdown and persistently high inflation.
However, some analysts believe that BTC could see a major price increase, often called a bull rally, due to an expected influx of new investments. This surge could help Bitcoin maintain its dominance in the highly stacked crypto market.
By Leonardo Pérez
