Bitcoin (BTC) Dominance Falls as Price Seeks Bottom
BTC is stepping back with a market cap dominance of 66%, as leading altcoins keep relatively stable.
Bitcoin (BTC) saw its dominance over the entire crypto market cap slide toward 66%. During the latest price drop, BTC headed downward, while altcoins stabilized or even gained.
BTC, which saw a significant growth of activity on futures markets, is at a crossroads again. The price stagnated around $8,800 for a short time, before sliding to $8,787.28 on Wednesday. Now, the predictions are for BTC finding a bottom, with the potential to go as low as $8,500.
The coming days and weeks will show if BTC reverses the trend, or goes to a lower range. BTC so far failed to fulfill expectations of a rally to $16,000, with some skepticism on whether the halving narrative would work to push prices upward.
More than 75% of all BTC volumes are propped up by Tether (USDT), and activity is still spread out to multiple exchanges, with no one market having significant influence. The Bitcoin blockchain carried around $860 million in transactions in the past day, a lower range in comparison to the $2.7 billion during the recent rally above $9,000.
BTC markets have now entered a mode stagnant stage, with less inflows of new liquidity and BTC to exchanges. Still, there are selling pressures from the occasional mid-range transaction.
BTC prices are also seen as turning bearish, unless a breakout happens quickly. The Fear and greed index has turned down a notch into fear territory, down to 38 points. Expectations are for BTC to bottom out before the next rally, or spend the next few weeks in bearish territory.
The current BTC price dominance is also much lower than the expected, as some predictions saw the dominance return to above 90% by the end of 2019. BTC has gained ground in 2019, though the rallies have been short-lasting and with a subsequent correction.