Bitcoin (BTC) is back to testing the lower levels after it failed to surpass the $60,000 resistance. Many indicators suggest that the downturn is not over. Bitcoin managed to bounce off $55,000 overnight on Monday, hours after it hit local highs of about $59,000 in bullish early trading.
Altcoins are outsmarting the BTC bulls and on-chain indicators are not as green as they have been, are more support tests inbound? With the sellers still in place near the all-time highs at $64,500, the biggest crypto has a mountain of work to do to exit its current broad trading range.
Bitcoin Is Back On Exchanges
One metric that may soon be causing issues for the market bulls is the general bitcoin balance on crypto exchanges. While experiencing a general rapid downtrend throughout the last year, local spikes in supply, when the traders send coins back to their crypto exchange accounts for a possible quick sale, appears to reflect a more selling-driven mentality entering.
That is not the case for every crypto exchange this week. Based on the data acquired from monitoring resource Bybt, 16,222 BTC has entered the global leader Binance exchange in the last seven days. On the contrary, institutional platform Coinbase Pro has lost 11,947 BTC, conforming to the general trend.
Yet Binance exchange is not alone, Bitfinex, Huobi, Okex, and Kraken have all seen their bitcoin balances tick up in the past 24 hours.
Greed Is Rising
Based on previous reports, a familiar face from the sentiment changes past us back this week; greed. Tracked by the Crypto Fear & Greed Index, it seems the appetite for a sell-off is rising, even as price action is no longer positive. The Index measures trader sentiment using a basket of weighted factors.
Today, the Index gave a general crypto market score of 68/100, corresponding to ‘greed’ being the general mood driver.
That is still below its mid-90s peak seen earlier in the year, a level that nearly guarantees a sell-off, but volatility guarantees that the Index does not remain in the same zone for long. ‘Greed’ can turn to “extreme greed” or “extreme fear” within a few days or even faster.
For example, on April 27, the Index measured just 27/100.
Dogecoin Adds Pressure On Bitcoin’s Dominance
The most conspicuous factor at play when it comes to issues facing bitcoin this week is altcoin pressure. At first, it was Ether (ETH) that led the pack and it outshined Bitcoin with its trip above $3,400 to reach all-time highs on May 3, 2021.
But for now, Dogecoin (DOGE) is leaving the rest in its dust, back above $0.47 after getting integrated on popular trading platform eToro. DOGE/USD was up 72% in a week compared to BTC’s 3% gains at the time of writing.
While the altcoin surges come in bouts, the mood among analysts is increasingly one of the long-term trend taking center stage before BTC can make up for the lost time and regain its market dominance.
Based on previous reports, one indicator even suggests that the combined altcoin market cap may explode by over 27,000% by the start of 2022. A popular Twitter trader known as Johnny summarized:
“The next 2-3 months are going to be epic for altcoins.”
He also forecasted a short-term price target of $5,000 for Ethereum. BTC’s market share is currently 46.3%, falling ever lower due to altcoin inflows.