Bitcoin [BTC]’s price is falling, and the sentiment of investors along with it. Moreover, analysts have continued to predict new lows for the top cryptocurrency, with the general consensus being of a bear run. However, Jeff deGraaf, the Chairman and Head of Technical Research at Renaissance Macro Research, said he would recommend betting against Bitcoin. However, he stated, one should do so if the cryptocurrency fell below its key year-to-date support level.
deGraff said in a note to clients that Bitcoin might be “permanently impaired”, stating that it is “game over” for the asset. He stated:
“Parabolic moves are notoriously dangerous for short‐sellers … Usually a top develops that often appears as a descending triangle over months, with reduced volatility and little [fanfare]. Once the top is complete on the support violation, the security in question can often be considered permanently impaired or even ‘game‐over’. We are of course referencing Bitcoin as exhibit ‘A’ in today’s market.”
At the same time, Bitcoin’s market dominance is at its 2018 high. With the cryptocurrency ruling over 50.5% of the market, many would see this as a consolidation of the market into Bitcoin.
The last time Bitcoin saw a market dominance of over 50% was on 19th December, where it held sway over 50.54% of the market. However, this was at the coin’s high point, and the dominance came crashing down with the price. On the very next day, the dominance was at 47.20%.
In 2018, highs of were seen in April, reaching points of about 45.5%. However, the hold of Bitcoin over the market is still increasing as the price continues to decline. It has continued to go above the 48% mark.
Current highs are still not close to what the coin held over the market before March of 2017, where it consistently represented over 80% of the value of the market.
However, the overall market cap has decreased by about $15 billion due to drops in prices. This occurred after a drop in price yesterday from $6400 to about $6100. The coin is currently trading at $6128.
Market analyst Iairus Germund stated:
“While price movement has been in a downward trend, this is by no means “the end” for Bitcoin. Even though the coin is trading at high probability of entering a bear run, rising dominance suggests funds flowing into Bitcoin. Even though the overall market cap is reducing, Bitcoin is exerting the first-mover advantage and weeding out products that cannot survive the bear run.”
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