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Since the crash in the price of the crypto market leader, the price has been consolidating on lower time-frames and has managed to stay above the key support. Currently, the price of BTC stands at $54,807. The market capitalization, however, stands at $938 billion. Though the price is in the consolidation phase, it has caused the dominance of the leading digital currency to go down below 50% for the first time in the past three years.
Byzantine General, a known trader, mentioned $47,000 as price support, and currently, BTC whales have made four major support clusters with a reasonable amount of the digital asset at $45,507, $46,532, $47,646, $48,507.
On the contrary, a major resistance has been formed around the $55,000 price mark, and a monitor whalemap has pointed to that area as an area of massive inflows. The 200 EMA (Exponential Moving Average) on the daily BTC charts will be notable support, and it sits currently at $44,000. Byzantine has earlier mentioned that the price of BTC is returning to that point.
He said: “$47,000 has been a support, and there are a number of indicators that support this with the whale bubbles inclusive. This is why I noted that there would be a bounce in the price for relief, but looking at the bigger picture, the price is coming to $40K.”
BTC Price Performance Affects Its Dominance In the Market
The price-performance of BTC has affected its dominance in the crypto market as this metric fell below 50% for the first time since 2018. It dropped to 37%, as claimed by Meltem Demiros, the Chief Strategy Officer at CoinShares. Currently, there has been a bit of recovery in the market dominance as it has bounced back to 49.5% at the time of writing.
Upon the fall in the market dominance of BTC in 2018, the altcoins saw notable gains. With the look of things, there is a possibility that the market will follow the same route. Though, Demiros is sure that the gains for some coins like Terra (LUNA) and Solana (SOL) would not be a function of the inflow of cash but a massive rotation on cryptocurrency platforms.
Therefore, necessity is seemingly laid on investors to monitor the market depth and trading volume of altcoins. He added that: “those coins with low trading volume, liquidity and price history could be potential high volatile coins.”
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