Why The Crypto Market Looks Unhealthy With Bitcoin At $21K, Expert Says
Bitcoin and Crypto Market
Modified Date:- Published Date:-Categories: Bitcoins
Why The CryptoMarket Looks Unhealthy With Bitcoin At $21K, Expert Says
Bitcoin andthe crypto market continued to move sideways over the past week after recordingimportant losses during the weekend. Despite the short-term bearish priceaction, there seems to be more appetite for risk in the sector as marketparticipants allocate more capital to altcoins.
At thetime of writing, Bitcoin (BTC) trades at $21,500 with a 2% profit over the past24 hours and an 11% profit over the past 7 days. The Bitcoin Dominance (BTC.D),an indicator used to measure the percentage of the crypto market’s total marketcap comprised of BTC, has been trending downwards as altcoins take off yearlylows.
As seenbelow, this metric has seen an important loss since July 2022 and was movingsideways across August only to resume bearish momentum over the past week. Themetric often trends to the downside when the altcoin sector is about to or isexperiencing bullish momentum.
Data fromresearch firm Sentiment record a spike in Bitcoin transactions settling at aloss as traders turn into altcoins. As seen below, the BTC Ration of On-Chaintransactions, a metric used to measure the number of transactions in profitversus those in losses, has followed Bitcoin’s dominance indicator and could beon the verge of further downside pressure.
Santimenthas noticed that Bitcoin is lagging in other areas, while Ethereum outperforms.The second cryptocurrency by market cap still trades at a critical area andrecords a 5% profit in the past 24 hours.
Ethereum isprobably positively responding to the expectation around “The Merge”, the eventthat will complete its transition from a proof-of-work (PoW) consensus to aproof-of-stake (PoS) consensus.
The crypto market seems to be taking longer than expected to recover from the weekend fallout. With Bitcoin at $21,000 and altcoins at an all-time low, experts are worried about the market’s health. One reason for this may be that investors who have previously been reluctant to invest in coins like Bitcoin are now seeing an opportunity to buy in before markets turn around.