The last five days have seen a real rally in the price of Bitcoin
Last Thursday it was around $25,000, while today it has risen again to $27,000.
These are two key levels that mean this bounce cannot be downgraded to just ordinary movement in the price of Bitcoin.
Bitcoin long phase of price lateralization
After closing 2022 at $16,500, the price of Bitcoin in early 2023 had started to rise, finally breaking above $27,000 again on March 17.
Since then, in fact, a long lateralization phase began that is still ongoing.
However, this was not a long period in which the price remained stable at $27,000, but rather a succession of rises and falls that always had this threshold as the central level.
While 2023 yearly highs above $31,000 were recorded in mid-April, last week saw the lows of this lateralization phase that has lasted for more than three months.
So not only is $27,000 an important level because it's the threshold around which BTC price has been oscillating for over three months, but $25,000 is also an important threshold because it's kind of a medium-term support below. of which it would be better not to lower the price.
That is, while Bitcoin may stay around or above $25,000, there does not appear to be a serious risk of a further collapse.
Conversely, if that support were to collapse completely, a return to $22,000 or $20,000 would also be possible. In that case, the ongoing lateralization would break down.
bitcoin mastery
Something much more important has also happened in the last few days.
Looking at Bitcoin's dominance as calculated by TradingView, we see that it has surpassed 50% for the first time since April 2021.
In other words, right now according to TradingViewBTC's market capitalization would be larger than all other cryptocurrencies combined.
The figure calculated by TradingView is not the only one, since depending on which cryptocurrencies are taken into account and how their market capitalization is calculated, different results can be obtained.
For example, if you also consider stablecoins you get decidedly different results, so if you also factor in the token market caps of now-dead projects, such as FTX or Classic Moon.
However, what matters is not the size of the percentage, but its trend over time.
The fact is that in April 2021, when Bitcoin's dominance was similar to what it is now, it was in the middle of a bull run. Since the end of April 2021, when the focus shifted to altcoins, the dominance began to drop and stayed low until January 2023, when it was still at 41%.
In February it had risen to 44% and in March to 47%.
The latest surge has come in the last two scant weeks, since many realized that several altcoins are at risk of being recognized as unregistered securities.
In other words, some capital in recent months is moving from altcoins to Bitcoin, and this increases both its dominance and its price.
the comment
According to Fineqia International analyst Matteo Greco, after the strong downward trend in the first week of June, a rebound was expected, mainly due to good news on the macroeconomic side.
However, there has not yet been a truly positive response from investors towards risky assets.
Bitcoin's dominance tends to increase when investors feel unsure about the short-term market trend, so they adjust their positions according to a less speculative strategy. They typically do this by increasing their exposure to BTC, as it is the least volatile of cryptocurrencies.
greek says:
โAt this stage, it is crucial to pay attention to the next actions of the SEC. It is difficult to predict what will happen, but surely the fight between service providers and the regulator is hurting the US digital asset market, with investors and entities leaving the country or reducing the size of operations , waiting for more clarity. This can be seen by looking at the euro's market share on centralized exchanges, in proportion to US dollar transactions. The euro's market share is now 18%, up from 9% at the start of the year relative to the US dollar."
