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3 Reasons Bitcoin Fails To Break Above $ 60,000 Barrier

Altcoins are outperforming Bitcoin bulls, and on-chain indicators are not as positive as before: new support tests looming?

Bitcoin (BTC) has retested lower levels after failing to conquer the $ 60,000 resistance – and indicators suggest that the slide is not over.

The BTC / USD pair bounced off $ 55,000 overnight Monday, hours after hitting local highs of nearly $ 59,000 in the first bullish trades.

  • Bitcoin price stagnation allows altcoins to keep rising

With sellers still in place closer to the all-time highs of $ 64,500, the major cryptocurrency has a lot of work to do to break out of its current wide trading range.

BTC returns to exchanges

One metric that could soon cause trouble for bulls is the overall BTC balance on cryptocurrency exchanges.

While a general downtrend has been observed throughout the past year, local spikes in supply – when traders send coins back to their exchange accounts for a potential quick sell – tend to reflect a more inflow-driven mindset. sales.

This is not the case for all exchanges this week. According to data from monitoring resource Bybt, 16,222 BTC have entered the world’s leading exchange, Binance, in the past seven days. In contrast, the institutional platform Coinbase Pro has lost 11,947 BTC, in line with the general trend.

However, Binance is not alone: ​​OKEx, Huobi, Bitfinex and Kraken have all seen their BTC balances rise in the last 24 hours.

Greed increases

As Cointelegraph reported, a familiar face from the sentiment swings of the past is back this week: greed.

  • BTC price is approaching $ 60,000: 5 things to watch out for about Bitcoin this week

According to the Crypto Fear & Greed Index, which measures trader sentiment using a basket of weighted factors, the appetite for a sale is increasing, even when price action is no longer positive.

On Tuesday, the index gave an overall cryptocurrency market score of 68/100, corresponding to «greed» being the overall mood engine.

This figure is still below its mid-1990s high seen earlier in the year – a level that almost guarantees a sell – but volatility ensures that the index does not stay in the same zone for long. «Greed» can turn into «extreme greed» or «extreme fear» in a matter of days or even faster.

On April 27, for example, the index measured just 27/100.

Dogecoin adds to the pressure of altcoins on Bitcoin

Last but not least, there is the most striking factor at play when it comes to Bitcoin’s troubles this week: altcoins.

  • 2 Key Ethereum Price Metrics Show Pro Trades Are Behind New Highs

At first, it was Ether (ETH) that led the pack and overshadowed Bitcoin with its trip above $ 3,000 to all-time highs on Monday.

Now, however, Dogecoin (DOGE) is leaving the rest in the dust, back above $ 0.47 after integrating with the popular eToro trading platform.

The DOGE / USD pair is up 72% in a week versus 3% for Bitcoin at the time of writing.

While altcoin surges come in streaks, analysts increasingly believe that a long-term trend is taking center stage before Bitcoin can make up for lost time and market dominance.

As Cointelegraph reported, one indicator even suggests that the combined market capitalization of altcoins could explode by more than 27,000% in early 2022.

«The next 2-3 months are going to be epic for altcoins,» popular Twitter trader known as Johnny, who also forecast a short-term price target of $ 5,000 for Ether, summed up his followers.

Bitcoin’s market share is currently 46.3%, and it is falling more and more thanks to the inflows of altcoins.

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