Bitcoin has gained slightly but it’s still not out of the woods. Its latest price drop resulted in the digital asset forming a weekly candle close below the 200-week moving average. BTC had last seen this level in March 2020. At that time, both the crypto and equities markets were reacting to the economic impact of the COVID-19 pandemic.
At the time of writing this article, Bitcoin has been up by nearly 2% in the last 24 hours. It’s trading at $20,415 as per data from CoinMarketCap. But the popular crypto has been down by 7.23% in the last seven days. Bitcoin dominance, which measures how much of the total crypto market capitalization makes up the favorite digital currency, dropped 7.5% because of its relative underperformance. BTC now stands at 44.25%. On the other hand, Ethereum’s dominance remained flat. Ethereum is currently trading at $1,117. It has gained nearly 4% in the last 24 hours.
Martin Leinweber, digital asset product strategist at VanEck index-maker MarketVector, believes the sell-off in blue chips (Bitcoin and Ether) makes this bear market different from the last one in 2017. He highlighted that it’s confusing investors, especially on the institutional side. Leinweber explained that in a sell-off, altcoins perform worst than the top two cryptocurrencies. But this time around, Bitcoin’s dominance is falling as the markets are crashing. The strategists pointed out that most altcoins have already lost 90% of their value. The relative size and underperformance of BTC and ETH led the crypto market to lose around 5% of its collective value. It slipped more than $900 billion for the first time since January 2021.
Meanwhile, Bitcoin is trading at a crucial level. Unless it gains further upside, another push lower is expected to follow with the next target located at the $16,000 market. Bitcoin enthusiasts are keeping their fingers crossed and await gains throughout the week.