The USD has been on a downward trend, and this is sparking hope of an eventual bitcoin bull run. Bitcoin’s price grew from $3,874 to nearly $4K in less than 24 hours as the cryptocurrency found support amidst fears that the US dollar will continue its slide into oblivion.
The “bitcoin price” is a cryptocurrency that has been on the rise in recent months. The dollar’s weakness has also helped to push bitcoin prices up, with some analysts predicting a 60% BTC dominance by 2020.
Bitcoin (BTC) achieved 48-hour highs overnight on May 20 as the US dollar fell, providing much-needed relief to bulls.
1 hour candle chart of BTC/USD (Bitstamp). TradingView (source)
After a 20-year high, the dollar’s power is fading.
According to Cointelegraph Markets Pro and TradingView, the highest price for BTC/USD on Bitstamp was $30,725.
Despite continuing to struggle to convert $30,000 into dependable support, the pair averted a larger pullback, assuaging concerns that last week’s $23,800 capitulation event was not the bottom.
The backdrop to Bitcoin’s comparatively strong performance was the US dollar index (DXY), which had fallen 2 percent in a week after hitting two-decade highs.
This appeared to relieve some pressure on stock markets, the S&P 500 finishing May 19 down a more modest 0.58% compared to previously in the week, the Nasdaq 100 less.
1-hour candle chart of the US dollar index (DXY). TradingView (source)
According to one expert, the biggest cryptocurrency has penalized latecomers to the market while treading water more than 50% below its all-time highs.
In a series of tweets on the day, Ki Young Ju, CEO of analytics platform CryptoQuant, said, “Today, novices who joined last year are in a -34% loss.”
Ki drew attention to a graph depicting the age of investments using bands of unspent transaction outputs (UTXOs). He determined that those who had just experienced one “bear cycle” previously were now down 39%, while older coins were still profitable.
“Here’s some bear hopium.” Based on historical MDD, $BTC might drop so violently owing to the macro crisis that all Bitcoiner institutions go submerged,” he warned.
Multiple forecasts of a large Bitcoin price fall, some as low as $14,000, continue to spread, as Cointelegraph reported.
Altcoins are always changing.
Meanwhile, the spotlight was on Bitcoin’s growing market dominance over altcoins.
Bitcoin must hold current price levels to avert a “far deeper” drop: Analysis
Outside BTC, the tone had turned sour after the Terra LUNA incident, and there were now indicators that alts may quickly surrender control.
At the time of writing, Bitcoin’s proportion of the global cryptocurrency market value was at 44.8 percent, the highest since October 2021.
“We might see dominance bounce all the way back to 60%,” IncomeSharks, a prominent Twitter account, predicted.
“This is why you should trade alts with tight stops and be careful.” There’s a significant probability we’ll start seeing money leave alts and return to BTC.”
BTC market dominance of 60% would be the highest level since March of last year.
“Despite yesterday’s surge on BTC, most alts I’ve been tracking haven’t been able to break their H4 trends,” another prominent analyst Pierre cautioned.
“Would still expect most of them to die twice harder if btc was to remain stuck within this same range, or resolve to the downside.” Bitcoin dominance 1-week candle chart. Source: TradingView
The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
The “Bitcoin” is a cryptocurrency that has been on the rise in recent months. The “weaker dollar lifts Bitcoin to $30.7K as analyst eyes 60% BTC dominance”. Reference: how to invest in bitcoin and make money.
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