In the last 24 hours, Bitcoin has broken a key support position of around $3,900. This follows a long bearish trend beginning during the weekend, triggered by the cryptocurrency’s failure to climb above $4,000.
As we reported yesterday, this failure was a signal that the bears had strength in the market. Because of this, they have continued to dominate and apply pressure to holders who are afraid that the current bearish trend will persist and continue to send prices further down.
At the time of press, this is the case, Bitcoin has dropped below $3,900 marking a more than 1% drop. Now, Bitcoin is trading for around $3,869. The drop by the crypto leader has also had a wider effect on altcoins as many have followed its lead, dropping by around 1% to 6%. The total market cap, which was trading above $135 billion a few days ago, has now fallen further down to reach a little over $132 billion.
BTC Dominance Going Up Or Down?
With the current bearish mood, it is likely that Bitcoin’s dominance drops as traders jump into altcoins that are trading in their all-time lows. This will allow them to maximize profits and allow them to step away from Bitcoin while they wait to see how it moves in the coming days. However as soon as Bitcoin begins to rally again, dominance will go up again which might just slow down altcoin’s movement as many will dump them and bet on Bitcoin making bolder and more stable leaps ahead. As one analyst explained, “altcoins are only safe when Bitcoin is lethargic.”
At the time of press, Bitcoins dominance stands at a little over 51.7% with its recent range being between 51% to 54%. The next couple of hours, depending on whether dominance increases or decreases might just signal whether traders believe prices will stabilize and climb or fall further down.
As far as key targets go, Bitcoin is now staring at a $3,850 position on the downside or getting back above $3,900. But of the two, it seems a downward trend is more likely owing to the fact that there are no positive developments happening and that it looks likely that Bitcoin’s failure during the weekend has proven that it will remain in the $3,700 and $4,200 price range for another couple of weeks.