Weaker dollar lifts Bitcoin to $30.7K as analyst eyes 60% BTC dominance

Bitcoin (BTC) hit 48-hour highs in a single day into Could 20 as U.S. greenback weak spot gave bulls some much-needed respite.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Greenback power declines after 20-year document

Knowledge from Cointelegraph Markets Professional and TradingView recorded a excessive of $30,725 for BTC/USD on Bitstamp.

Nonetheless struggling to flip $30,000 to dependable help, the pair nonetheless averted a deeper retracement, serving to calm fears that final week’s $23,800 capitulation occasion didn’t mark the underside.

The U.S. greenback index (DXY) offered the background to Bitcoin’s comparatively stable efficiency, this coming off two-decade highs to dip 2% in per week.

This appeared to alleviate some strain on inventory markets, the S&P 500 ending Could 19 down a extra modest 0.58% in comparison with beforehand within the week, the Nasdaq 100 much less.

U.S. greenback index (DXY) 1-hour candle chart. Supply: TradingView

Whereas treading water greater than 50% under its all-time highs, the biggest cryptocurrency had punished latecomers to the market, one analyst famous.

“Right this moment, newbies who joined final yr are in -34% loss,” Ki Younger Ju, CEO of analytics platform CryptoQuant, wrote in a series of tweets on the day.

Ki highlighted a chart of bands of unspent transaction outputs (UTXOs) exhibiting the age of investments. Those that had solely skilled one “bear cycle” earlier than had been now down 39%, he concluded, whereas older cash had been nonetheless in revenue.

“So here is hopium for bears. If $BTC crashed so onerous as a result of macro disaster and all Bitcoiner establishments go underwater, it may go $14k based mostly on historic MDD,” he added.

As Cointelegraph reported, a number of predictions of a significant BTC worth retracement, some below $14,000, proceed to flow into.

Altcoins roll over

In the meantime, consideration targeted on Bitcoin’s growing market presence over altcoins.

Associated: Bitcoin should defend these worth ranges to keep away from ‘a lot deeper’ fall: Evaluation

After the Terra LUNA debacle, the temper had turned chilly outdoors BTC, and now, indicators had been there that alts may cede dominance quickly.

At 44.8%, Bitcoin’s share of the general cryptocurrency market cap was at its highest since October 2021 on the time of writing.

“We may see dominance rally all the way in which again to 60%,” common Twitter account IncomeSharks forecast.

“That is why you should be cautious on alts and commerce them with tight stops. There is a good probability we may see cash depart alts and begin going again to BTC.”

60% BTC market dominance would characterize a degree not seen since March final yr.

“Most alts I have been watching have not been capable of break their H4 traits regardless of yesterday’s transfer on BTC,” fellow common analyst Pierre warned.

“Would nonetheless count on most of them to die twice tougher if btc was to stay caught inside this identical vary, or resolve to the draw back.”

Bitcoin dominance 1-week candle chart. Supply: TradingView

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, you need to conduct your personal analysis when making a call.