Bitcoin began the second quarter of 2021 on a pessimistic note, which turned into a real depression and a change in the general state of affairs in the crypto market. At the same time, the main asset managed to avoid an even greater fall and consolidated in the corridor of $ 54 -58 thousand. However, right now, cryptocurrency is stuck at the above frontiers, and cannot overcome them.
Bitcoin made a definite attempt to break through the psychological barrier yesterday. But once again the asset quotes fell to stable indicators of $ 55 thousand. The reasons for cryptocurrency fluctuations have not changed significantly. Bitcoin continues to recover from a very painful fall. But bull support at this stage is unable to break the bearish pressure. The latter, in turn, entered the asset at an acceptable level of $ 40-$ 45 thousand and fix a profit. It doesn’t allow the BTC indicators to grow in price. In addition, the pressure is increasing due to the transfer of Bitcoin to altcoins, which are more promising at this stage.
Bitcoin dominance decreased
The institutionalization of the first cryptocurrency has dropped significantly. Part of the existing BTC audience has moved to ETH. As it’s on the wave of success following the Berlin renewal. The main altcoin also caught the attention of the world community, which is why Bitcoin sluggishly responds to positive news impulses.
It is also worth noting that a real realignment of power is taking place in the cryptocurrency market. Bitcoin’s dominance share fell to 42.4%, while ETH rose to 18.6%. This indicates a reorientation of a significant part of the market in favor of altcoins, which receive much more development branches, updates and growth prospects.
This is also evidenced by the consistently high rates of Bitcoin trading volumes in 24 hours – more than $ 80 billion – but the absence of any growth. This indicates the interest of retailers who are unable to change the situation around the asset. Therefore, over the past day, BTC fell back to $ 55 thousand, having fallen in price by 3%.
At the same time, positive preconditions have formed around the first cryptocurrency, which may portend the fixation of the asset behind the $ 60 thousand mark. The number of addresses, where more than a thousand Bitcoin coins are concentrated, resumed the upward trend for the first time since mid-April. This could be a short-term impulse, but it could be a signal for renewed interest in the first cryptocurrency. However, there is no reason to hope for a quick increase in BTC / USD indicators. Since the pressure of the market and bears on the asset is still too great. At this stage, overcoming the first cryptocurrency milestone of $ 60 thousand and further consolidation above this mark can already be considered a significant achievement.
Analysts warn that the Bitcoin rate may decline again in the near future. According to experts, the current recovery in quotes indicates a lack of support for the cryptocurrency. It may lead to a drop in its price to $ 40,000 if it is not possible to maintain higher levels of support. After that, however, a new wave of asset price growth will begin.
Experts suggested that the flight to the moon did not end, but was paused. In this case, the market is at the stage of consolidation before the final upward surge. With a high degree of probability, the bulls will take control of the bears, and the price of Bitcoin will begin to rise.